As Shiba Inu price faces rejection at a crucial resistance level, a top trader has said he is opening a 5X Short leverage position on SHIB, anticipating a 28% crash from the current price. His forecast indicates a strong bearish sentiment, sparking curiosity about what factors could influence this decision.
SHIB price dropped 5.8% during late Thursday New York after-hours session to trade at $0.00001753. This effectively wiped off all the gains made in the last two weeks. The decline likely stems from the crypto market crash that occurred late October 31.
Why Shiba Inu Price Could Drop to $0.00001245
Top trader Alan Santana shared his analysis of Shiba Inu price on his Tradingview account, which suggests that the meme coin is about to drop by 28% from its current price.
His analysis reveals that the asset is still range-bound despite the SHIB price increase. After testing the upper side of the range and getting rejected, Shiba Inu is likely to drop lower to test the lower boundary in hopes of a rebound.
The major reason behind Santana’s forecast is Bitcoin price action, which shows a fake bullish breakout. The Bitcoin weekly candle still has another 3 days left to complete. After peaking last week at $69,586 and closing at $68,035, BTC opened this week with a move above resistance, turning market participants bullish.
However, since the week is just halfway through, Santana says that BTC could end the week on a bearish tone and notes that the recent drop below $70,000 is a sign. Santana predicts that the Bitcoin price chart “gives certain messages,” one of which is that the king of cryptos is likely to enter a correction phase before hitting a new major high of $102,000.
Will SHIB Price Crash 28%?
While Santana’s analysis is valid from his point of view, Shiba Inu price action also reveals bullish tendencies. The daily chart shows SHIB price approaching the end of a bullish pennant. Pennants are continuation patterns, suggesting that the overall prediction is still bullish even if Shiba Inu will likely drop further.
The SHIB price will likely drop further by about 4% to reach the first support level (S1), which, if it breaks through, could find lower support (S2) around $0.000016. A breach of this level would confirm Santana’s bearish bias, pushing the price lower to $0.00001245.
On the flip side, if bulls push the price above R1 and R2, it could result in a 68% breakout that could send the SHIB price to $0.00003450.This would invalidate the bearish thesis, turning the Shiba Inu price forecast bullish.
The post Top Trader Says He Is ‘5X Short’ On Shiba Inu Price, Here’s Why appeared first on CoinGape.
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