The overall decline of the crypto market creates a bleak picture for Shiba Inu

The Shiba Inu price tried to get out of the penalty zone, but after just two quiet trading days over the weekend, SHIB was back on the bench. Even more investors closed their positions after data from China showed that the current lockdowns are undermining the economy and intensifying the coming global recession.

This, combined with all the other tail risks, indicates that cryptocurrencies are by no means in the best shape to rally and lock in inflows.

The SHIB price failed to hold above the $0.00001209 line, where a rally to $0.00001708 should have begun. Instead, the price could fall lower to the $0.00000965 level, which would be a strong psychological blow for traders. As soon as this level is broken through, expect a massive sell-off, as a result of which the price of SHIB will quickly fall to $0.00000655.

There is a slight possibility that the monthly S2 support level at $0.00001122 could trigger a bullish reversal along with the Relative Strength Index (RSI), which should break back into oversold territory.

This could prevent the bears from increasing their positions, perhaps even provoking them to take some profits as a possible test below $0.00001 failed.

A daily close above $ 0.00001209 would set the stage for a rise to $ 0.00001708 by the end of the trading week.