The Shiba Inu (SHIB) Price Approaching Yearly Low
The price of Shiba Inu (SHIB) has been on a downward trend since August and is now nearing its yearly low. It has also dropped below the $0.0000080 support level, which had been holding for a year.
Shiba Inu Yearly Low Risks Being Reached
An analysis of the weekly chart reveals that the price of Shiba Inu has been declining since August when it was rejected by a long-term descending resistance trendline that has been in place for 427 days. Additionally, the altcoin fell below a significant support area at $0.0000080, which had consistently provided support for over a year.
Typically, when a breakdown occurs, it is expected for the price to retest the same area and confirm it as a new resistance level. However, this did not happen with Shiba Inu; instead, the price continued to decline.
The Relative Strength Index (RSI), an important momentum indicator, shows a bearish reading for the meme coin on the weekly chart. The RSI was rejected at the 50 level in August and is currently trending downwards.
SHIB Price Prediction: Where to Next?
An analysis of the daily timeframe does not provide a clear confirmation of the trend’s direction. Since August 14, the price of Shiba Inu has been declining within a descending parallel channel. It recently bounced off the support line of this channel on September 11 but faced rejection at the channel’s resistance line on October 2.
Considering these factors, it is likely that the cryptocurrency will experience a potential 9% decline towards the support line of the channel at $0.0000065.
However, if there is a breakout from the channel, it would indicate a bullish trend and could lead to a 33% increase to the next resistance at $0.0000095.
Hot Take: Shiba Inu Price Continues to Decline
The price of Shiba Inu (SHIB) has been on a downward trajectory since August and is approaching its yearly low. It has also fallen below a significant support level, indicating a bearish trend. The Relative Strength Index (RSI) confirms this bearish sentiment. Based on the analysis, the most likely scenario is a further decline towards the support line of the descending channel. However, if there is a breakout from the channel, it could signal a bullish trend and result in an upward price movement. Traders should closely monitor these key levels to determine the future direction of Shiba Inu’s price.
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