The Shiba Inu (SHIB) price attempted to break out on November 27 but was unsuccessful. As a result, the price has fallen since then. However, SHIB is still trading within a corrective pattern, and the question remains whether it will break out or not.
Shiba Inu Fails to Break Out
Looking at the weekly timeframe, Shiba Inu has been decreasing since January and is currently below a descending resistance trend line. This trend line has caused multiple rejections, with three of them occurring in November. These rejections have created long upper wicks, indicating selling pressure. The most recent rejection on November 27 led to the current price decline. Additionally, since June, SHIB has followed an ascending support trend line, forming a symmetrical triangle when combined with the resistance.
Using the Relative Strength Index (RSI) as a momentum indicator, traders can determine if a market is overbought or oversold and make decisions accordingly. A reading above 50 with an upward trend indicates an advantage for bulls, while a reading below 50 suggests the opposite. Currently, the daily RSI is at 50, failing to confirm the trend’s direction.
SHIB Price Prediction – When Will Breakout Transpire?
On the six-hour timeframe chart, SHIB has been moving within a descending parallel channel since November 11. These channels typically contain corrective movements and suggest that a breakout is likely in the future. On November 22, SHIB bounced off the 0.618 Fib retracement support level, which also coincided with the channel’s support trend line. However, the price failed to break out from the channel.
Cryptocurrency trader ChartMonkeyBTC believes that there will be a significant increase in SHIB’s price in the short term. He suggests that a valid breakout could result in a profit of over 100%. However, the outcome of whether SHIB breaks out or gets rejected from the channel will determine the future trend’s direction.
Hot Take: Burning Tokens and Price Outlook
In the past 24 hours, 36 million SHIB tokens were burned, with a total of 320 million burned over the past seven days. This burning activity may have an impact on SHIB’s price in the future. If there is a breakout from the channel, it could lead to a 35% price increase, with the next resistance level at $0.0000105. Conversely, if there is a failure to break out, the price may drop by 10% to the closest support level at $0.0000072.
Overall, the fate of SHIB’s price remains uncertain as it continues to trade within its corrective pattern. Traders and investors should closely monitor the breakout potential and consider factors such as burning tokens to make informed decisions about their SHIB holdings.
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