The Shiba Inu (SHIB) Continues to Decline
The price of Shiba Inu (SHIB) has been on a downward trend since August, approaching its lowest point of the year. During this time, it also fell below the $0.0000080 support level that had been holding for over a year.
Analysis of the Weekly Timeframe
An analysis of the weekly timeframe reveals a downtrend in Shiba Inu that began when a long-term descending resistance line rejected the price in August. This trendline has been in place for 434 days. Additionally, the altcoin broke below a critical horizontal support area at $0.0000080, which had been holding for a year with only a brief deviation in June.
Normally, after such a breakdown, the price would retest the same area and confirm it as resistance. However, Shiba Inu did not follow this pattern and instead continued its descent.
Relative Strength Index (RSI)
The Relative Strength Index (RSI), an important indicator for traders to assess market conditions, has shown bearish readings for Shiba Inu. RSI values above 50 combined with an upward trend typically indicate a bullish market, while values below 50 suggest the opposite. In this case, the RSI was rejected at the 50 level in August and is currently trending downward.
Daily Timeframe Analysis
On the daily timeframe, there are mixed readings for SHIB’s price. It has been trading within a descending parallel channel since August 14. These channels usually contain corrective movements and often lead to eventual breakouts.
Within the channel, SHIB has reached both the support and resistance trendlines and is currently close to the resistance line. The RSI on the daily timeframe is increasing but still below 50.
Price Prediction: Breakout or Rejection?
The future outlook for Shiba Inu will depend on whether there is a breakout or a rejection from the channel’s resistance line. If there is a breakout, SHIB could increase by 30% to $0.0000095. Conversely, a rejection could lead to a 13% drop to the channel’s support line at $0.0000063.
Hot Take: Shiba Inu Faces Uphill Battle
Shiba Inu (SHIB) has been facing significant challenges in recent months, with a continued downward trend and a break below key support levels. The altcoin’s failure to retest previous support turned resistance suggests further bearish pressure. Additionally, the RSI readings indicate a bearish market sentiment.
While there is potential for a breakout in the future, it remains uncertain whether SHIB will be able to overcome its current obstacles. Traders and investors should closely monitor price movements and key levels to make informed decisions about their SHIB holdings.
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