Is Shiba Inu (SHIB) Entering ‘Healthy Correction’ With 43% Upside Still on the Menu?

Cryptocurrency Shiba Inu (SHIB), which had been demonstrating confident growth in recent days, gaining as much as 22% in price since March 9 at the peak, has over the past 24 hours shown a decline that already amounts to 6% from the local high reached yesterday at the $0.00000644 mark, as per TradingView. 

This pullback, occurring in the middle of the week, can be called a healthy correction, demonstrating that the current growth of Shiba Inu is not a pump that will quickly deflate but rather a sustainable rally that has every chance to continue.

Last chance before the Fed? Why Shiba Inu (SHIB) bulls are defending the dip

As previously noted by U.Today, a strong price magnet for SHIB is the 200-day moving average, which is now positioned at the $0.00000860 level, or 43% above the current Shiba Inu price. 

How long the correction will last is difficult to predict. A nearby support level is the 23-day moving average, currently located around $0.00000574 for SHIB. However, reaching this level would mean absorbing the gains of the last four days, which would represent a deep correction but would still leave a chance for the rally to continue toward the 200-day MA.

An important driver and trigger that may influence the crypto market and Shiba Inu fundamentals in the coming days is tomorrow’s U.S. Federal Reserve rate decision. Even more significant than the rate itself, which is expected to remain unchanged, will be the rhetoric from the FOMC and Fed Chair Jerome Powell. 

In the current macroeconomic environment, where U.S. GDP is declining but inflation data remains weak, the rhetoric is expected not to be aggressive, though it cannot be said with certainty that it will be dovish.

Thus, the market remains in balance with moderate risks. At the same time, as we can see, cryptocurrencies as a sector that previously fell faster than others are now recovering, albeit with pauses.