The Shiba Inu (SHIB) Price Faces Resistance
The SHIB price has seen a decline since December 17 when it failed to break out from an ascending parallel channel. Although the price is still above a long-term resistance area, short-term indicators show weakness despite a recent token burn.
Shiba Inu Closes Above Resistance
On the weekly chart, the SHIB price has been steadily increasing since June. It broke out from a descending resistance trend line in December and closed above an important horizontal resistance area. Additionally, over 7.5 million SHIB tokens were burned in the past 24 hours, and the total value locked in Shibarium surpassed $1 million.
RSI Indicates Bullish Trend
Traders often use the RSI as a momentum indicator to determine market conditions. The RSI reading for SHIB is currently above 50 and moving upward, indicating a bullish trend.
SHIB Price Prediction: Correction Expected
However, on the daily chart, it appears that the SHIB price will undergo a correction. The price was rejected by a resistance trend line and created a lower high. The daily RSI also showed a bearish divergence, supporting the ongoing correction. If the decrease continues, the closest support area is at $0.0000095.
Despite Correction, Potential for Increase
Although there is a bearish short-term prediction for SHIB, breaking out from the channel could invalidate the correction and potentially lead to a 40% increase to the next resistance at $0.0000150.
Hot Take: Will SHIB Overcome Resistance?
While facing resistance and potential correction, the future of the SHIB price remains uncertain. Breaking out from the current channel could lead to significant gains, but it will depend on market conditions and investor sentiment. Keep an eye on key indicators and market trends to make informed decisions regarding your SHIB investments.
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