Thursday’s rally is old news as Shiba Inu tanks over 1%

• Shiba Inu price slides lower in the ASIA PAC and European session.
• SHIB sees a large part of its gains from Thursday being erased.
• The target to the downside remains unchanged, with another 10% decline.

Shiba Inu (SHIB) price action rallied in the US session on Thursday as both initial and continuous jobless claims rose. In terms of timing when the pivot level for the US Federal Reserve will be met, next to lower inflation and a lower housing index, a growing army of people without a job is the third metric to measure when that might be. With the climb in jobless people, the tilt towards rate cuts instead of hikes could come sooner than initially presumed.

Shiba Inu whipsaw on constant repricing towards Fed pivotal level

Shiba Inu price action slid over 1% during the ASIA PAC and European session as the US Dollar strengthened after briefly weakening overnight. The key theme this week is not if there will be a late Christmas rally but rather the constant repricing towards a pivotal Fed level. With the economic numbers at the beginning of the week, markets started to price out the possibility of rate cuts for 2023, whereas after the jobless data on Thursday, a cut could be in the cards for 2023.

SHIB is thus being thrown left and right a bit, with on the one hand bears that are still in their short-positions and not ready to give up, and on the other hand, bulls buying the dip and expecting to sit on their positions and see big profits in 2023, once the US Fed starts to cut rates, thus triggering a ‘goldilocks’ scenario for risk assets. Bears are currently still in the driving seat, however, as every bit of Dollar strength immediately smashes down any rally in cryptocurrencies. Expect to see SHIB slide further toward $0.00000738 before it finds solid support.

SHIB/USD daily chart

Any upside moves should be on the back of some market-changing news coming from risk being taken out. Seeing that New Year will be quite quiet on all fronts, any catalysts are not foreseen until the second week of January. That means that SHIB  could rally back toward $0.00000900 by then, and trigger a 14% price increase in the process.