The Shiba Inu (SHIB) Price Breakdown: What’s Next?
The Shiba Inu (SHIB) price recently broke down from a short-term continuation pattern, leaving investors wondering about its future trajectory.
Shiba Inu Retests Diagonal Resistance
Looking at the weekly price action, SHIB has been on an upward trend since June, breaking through a descending resistance trend line and a horizontal resistance area. However, the recent sharp fall in price has validated the descending resistance trend line.
Despite this, over 12 million SHIB tokens were burned in the past 24 hours, indicating increased activity in the market.
RSI Signals and Price Prediction
The Relative Strength Index (RSI) is often used by traders to gauge momentum and make decisions on asset accumulation or selling. The RSI moved above 50 in conjunction with the price breakout, confirming the upward movement.
On the daily timeframe, there is a bearish trend indicated by the price action and RSI readings. The SHIB price has traded within an ascending parallel channel since June and recently broke down from a symmetrical triangle pattern. There is a risk of falling below minor support at $0.0000095.
If the RSI continues to decrease, SHIB could fall by another 20% and reach the channel’s support trend line at $0.0000075. However, reclaiming the $0.0000095 support area could trigger a 35% increase to the channel’s resistance trend line at $0.000013.
Hot Take: The Future of SHIB
The recent breakdown in the SHIB price raises questions about its future performance. While there are bearish indications in the short term, such as the price action and RSI readings, it’s important to consider the overall market sentiment and potential for recovery.
Investors should closely monitor key support and resistance levels, as well as any significant developments or news that could impact SHIB’s price. As with any investment, it’s essential to conduct thorough research and make informed decisions based on your risk tolerance and investment goals.
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