The Shiba Inu Price Breaks Below Critical Support: Bearish Trend Ahead
The Shiba Inu (SHIB) price has recently closed below a crucial horizontal support level at $0.0000080, indicating a shift in the trend towards bearish territory. Unless SHIB manages to reclaim this level, it is expected to continue its downward trajectory, potentially reaching new lows.
Weekly Timeframe Analysis: Signs of Bearish Momentum
An analysis of the weekly timeframe reveals that the SHIB price experienced a bounce on June 10, indicated by a long lower wick symbolizing buying pressure. However, it was subsequently rejected by a descending resistance line and has been on a downward trend since. Last week, it fell below the $0.0000080 support area, suggesting that it may now act as a resistance level. If the downward movement persists, the next support area is likely to be at $0.0000060, while breaking out above $0.0000080 could lead to a resistance level at $0.0000150.
The weekly Relative Strength Index (RSI) further supports the bearish trend, as it is currently below 50. A bearish RSI, coupled with the rejection of the 50 line and resistance line, indicates a downward price prediction for Shiba Inu.
Is the SHIB Price Breakdown a Sign of Things to Come?
Examining the daily timeframe data, we can observe a bearish trend in the Shiba Inu price. The breakdown from an ascending support line that had been intact since June suggests a potential fall in the future. The daily RSI is also bearish, falling below 50 without any bullish divergence. Based on these indicators, the most likely price prediction for SHIB is a decline towards the long-term support at $0.0000060.
However, if SHIB manages to reclaim the $0.0000080 level, it would invalidate the breakdown and indicate a bullish trend. In that scenario, the price could potentially rise to the descending resistance line at $0.000010, representing a 32% increase from the current price.
Hot Take: Proceed with Caution in Shiba Inu’s Bearish Market
With the recent breakdown below critical support and multiple bearish indicators, caution is advised in the Shiba Inu market. While the Shibarium wallets reaching 1 million demonstrates ongoing interest, the overall trend suggests potential further downside. Keep a close eye on price movements and key support/resistance levels to make informed decisions in this volatile market.
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