The Shiba Inu (SHIB) Price Analysis: Will There Be a Breakout?
The current trading range for the Shiba Inu (SHIB) price is between $0.0000060 and $0.0000080. In the shorter timeframes, the price is in a corrective pattern.
Descent Causes Breakdown Below Support
Looking at the weekly timeframe, the technical analysis indicates a bearish outlook due to recent price action. The SHIB price was rejected by a descending resistance trendline in July, resulting in a long upper wick and initiating a downward movement. Additionally, the price broke below the $0.0000080 support level.
After such breakdowns, support areas often turn into resistance. If the price touches the $0.0000080 area again and subsequently decreases, it will confirm this level as resistance. This area is close to the descending resistance trendline.
The weekly RSI also indicates a bearish trend. The RSI is a momentum indicator used to determine if a market is overbought or oversold. A reading above 50 with an upward trend suggests bullishness, while a reading below 50 indicates bearishness. In this case, the trendline rejection aligns with the RSI’s rejection at 50, further indicating a bearish trend.
SHIB Price Prediction: Will There Be a Breakout?
On the 12-hour timeframe, there is a more bullish outlook for the SHIB price. The price is trading in the upper portion of a descending parallel channel, which often contains corrective movements and may lead to an eventual breakout. This is supported by the fact that the meme coin is trading in the upper portion of the channel.
In addition, the RSI is increasing and approaching the 50 level, which suggests a bullish trend. If there is a breakout, the price could increase by 30% and reach the long-term descending resistance trendline at $0.0000095.
However, if the channel’s resistance trendline rejects the price, it would invalidate this bullish analysis and likely result in a 12% drop to the support trendline at $0.0000065.
Hot Take: SHIB Price Analysis
The Shiba Inu (SHIB) price is currently trading within a range and is showing mixed signals. The weekly timeframe suggests a bearish outlook, with the price being rejected by a descending resistance trendline and breaking below a key support level. On the other hand, the 12-hour timeframe presents a more bullish scenario, with the price trading in the upper portion of a descending parallel channel and the RSI indicating a potential bullish trend. Traders should closely monitor these levels and wait for confirmation of either a breakout or further bearish movement before making any trading decisions.
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