- Shiba Inu price rally faded as VIX futures rose by more than 1%.
- The index, together with the DXY, rose after the latest bank earnings.
- These results raised the possibility of a recession.
Shiba Inu price wavered on Friday as the VIX index darted higher following the latest Wall Street earnings. The SHIB token, which was trending on CoinMarketCap, drifted to a low of $0.0000094, which was about 3.77% below the highest point this week. Like other cryptocurrencies, Shiba Inu’s price remains about 22% above the lowest point in December.
VIX index rebounds
The recent SHIB price surge happened at a time when market volatility was falling. A closer look at key assets provides more information about that. For example, the US dollar index (DXY), which tracks the performance of the greenback, plunged to $102, the lowest point in months.
At the same time, the VIX index, which is Wall Street’s volatility gauge, plunged to a low of $18.85, the lowest point since December. The VIX has plunged by over 41% from its highest point in September while the DXY index has declined by over 13%.
Find out how to buy Shiba Inu.
Shiba Inu price tends to have an inverse relationship with the VIX and DXY indices. The two have plunged as investors react to the recent trends in inflation. Data published this week showed that consumer inflation in the United States plunged for six straight months. As a result, there is a high possibility that the Fed will start its pivot.
VIX index futures rose by more than 1% on Friday as investors focused on the latest Wall Street earnings. Results by leading companies like JP Morgan, Citigroup, and Bank of America showed that the American economy was going through strains.
Citigroup said that its profits dropped by more than 21% while JP Morgan warned that there will be a mild recession in 2023. Wells Fargo, the troubled lender, said that its losses mounted as provisions for bad loans rose. Goldman Sachs, which is cutting jobs, saw its profits plunge in the consumer spending division.
Read our comparison of SHIB vs DOGE.
Shiba Inu price prediction
Turning to the four-hour chart, we see that the SHIB price has been in a bullish trend in the past few weeks. Another reason for this rally is that investors are anticipating the upcoming Shibarium launch. The token has moved above all moving averages. Oscillators like the Relative Strength Index (RSI) have all soared as well.
Therefore, I suspect that SHIB’s rally will take a breather in the next few days and then resume the bullish trend. If this happens, the next support level to watch will be at $0.0000090.
Contributors
