The Shiba Inu (SHIB) Price Reclaims Lost Long-Term Level
The Shiba Inu (SHIB) price has been on a tear since June 10, reclaiming a horizontal and diagonal long-term support level in the process. The readings from both the weekly and daily timeframes support the continuing increase, suggesting that the trend is bullish.
Main Breakdowns:
- SHIB price has been moving upwards since June 10 after breaking down from a long-term symmetrical triangle pattern.
- The price bounced at the $0.0000060 support area, which hasn’t been reached since the end of 2021.
- The price reclaimed both the $0.0000080 horizontal area and the triangle’s support line, indicating a bullish reversal.
- Despite the increase, the weekly Relative Strength Index (RSI) does not confirm the bullish trend reversal.
- An RSI movement above the 50 line and a price breakout from the previous triangle’s descending resistance line is needed to confirm the bullish trend reversal.
SHIB Price Prediction: Is Breakout Sign of Bullish Trend Reversal?
The daily timeframe also supports a bullish trend. SHIB broke out from a 158-day descending resistance line on July 12, leading to the reclaim of a long-term horizontal support level. However, the price was rejected by the 0.5 Fib retracement resistance level on August 5. For the bullish trend reversal to continue, the SHIB price needs to break out from the 0.5 Fib level and increase to the long-term triangle’s resistance line near $0.0000120.
Main Breakdowns:
- A breakout from a 158-day descending resistance line on July 12 led to the reclaim of a long-term horizontal support level.
- If the increase continues, the SHIB price could reach the long-term triangle’s resistance line at $0.0000120.
- Closing below the $0.0000080 support area would indicate a bearish price trend.
- A drop to the closest support at $0.0000060 would be expected in that case.
Hot Take:
The SHIB price has shown signs of bullish trend reversal, reclaiming lost long-term levels and experiencing upward momentum. However, confirmation of the bullish trend reversal would require an RSI movement above the 50 line and a price breakout from the previous triangle’s resistance line. Additionally, the price needs to break out from the 0.5 Fib level to continue the bullish trend. While the current prediction is positive, a close below the $0.0000080 support area could indicate a bearish price trend.
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