The Shiba Inu (SHIB) price has been unable to break out of an ascending parallel channel and has experienced a decline. The weekly and daily time frames are not in alignment, and there has been a decrease in tokens burned recently.
Shiba Inu Clears Diagonal Resistance
On the weekly time frame, SHIB has been moving upwards since hitting a low in June. In November, the price broke out from a descending resistance trend line. However, it has not experienced a significant surge and continues to trade near the resistance line. There has also been a noticeable decrease in tokens burned in the past 24 hours.
Market traders use the RSI as a momentum indicator to determine overbought or oversold conditions. Readings above 50 indicate an advantage for bulls, while readings below 50 suggest the opposite. The RSI moved above 50 during the price breakout, confirming the upward movement.
SHIB Price Prediction: How Long Will the Price Correct?
The daily timeframe suggests a potential correction for SHIB price due to observed price action and the RSI indicator. On December 17, SHIB was rejected at the resistance trend line of an ascending parallel channel. It subsequently formed a lower high on December 23, indicating a bearish signal. There is also a bearish divergence in the daily RSI during this period.
If the decline continues, the nearest support level is expected to be around $0.0000095, representing a 10% decrease from the current price. However, if SHIB breaks out of the channel, it could experience a 42% increase and target the next resistance at $0.0000150.
Hot Take: SHIB Price Faces Resistance and Potential Correction
The Shiba Inu (SHIB) price has encountered resistance and is facing the possibility of a correction. While there was a breakout from a descending resistance trend line, the price has not seen a significant surge. The RSI indicator suggests bullish momentum, but recent price action and bearish divergence indicate a potential correction. If the decline continues, support can be found at $0.0000095. However, a breakout from the channel could lead to a substantial increase in price. It’s important to monitor these factors to make informed decisions about SHIB trading.