Shiba Inu price has rallied by close to 45% since the beginning of 2023. Even so, it has eased on its rally as investors await further cues from the Fed meeting in the coming week. At the same time, concerns over the health of the US economy continue to shape the crypto price movements.
Fundamentals
As is often the case, the crypto fear & greed index accurately highlights the mood among crypto investors. Last month, the measure of market sentiment was at a fear level of 27. With hopes that inflation has peaked and that the Fed will slow on its interest rate hikes, the index has improved to a neutral level of 54. The neutral market sentiment explains why Shiba Inu price has been recording rather subtle movements over the past one week.
Even so, the altcoin and broader class of risk assets may remain under pressure ahead of the Fed meeting slated for 1st February. Notably, investors are concerned over the health of the US economy. Data released on Wednesday showed that the US manufacturing activity shrank in January for the fifth consecutive month.
US GDP data on Thursday and the PCE price index on Friday will give further cues on the probability of a recession. Signs that the US economy is slowing will probably fuel risk aversion in the crypto industry.
Shiba Inu price forecast
Similar to most other cryptocurrencies, Shiba Inu price was on steady rallying in the initial two weeks of 2023. In fact, during this time frame, it only recorded three sessions of losses. The uptrend culminated into an over two-month high on 18th January at 0.00001298.
Notably, the movements have been rather subtle in the past one week. Ahead of the Fed meeting in the coming week, I expect the range-bound trading to continue.
As SHIB/USD hovers around 0.00001150, the range between the 25-day EMA at 0.00001050 and 0.00001278 will be worth watching. A risk-off mood on the back of a hawkish Fed may give the bears an opportunity to retest the crucial zone of 0.00000900. On the upside, I expect a rebound to remain curbed at around 0.00001400.
