The Shiba Inu (SHIB) Price Faces Resistance and Drops Below Support
The price of Shiba Inu (SHIB) has experienced a decline after being rejected by a descending resistance trendline in August. Additionally, it fell below the $0.0000080 horizontal support level during this decrease.
Rejection Leads to a Drop Below Support
An analysis of the weekly timeframe for Shiba Inu reveals that the SHIB price has been falling since it was rejected by a long-term descending resistance trendline in August. This trendline has been in place for 420 days.
During this decline, SHIB also dropped below the $0.0000080 horizontal support area, with the exception of a deviation in July. This support area had previously held for over a year.
Bearish Signs in RSI Indicator
The weekly Relative Strength Index (RSI) for SHIB indicates bearish momentum. The RSI is a momentum indicator used to assess whether a market is overbought or oversold, and readings above or below 50 can suggest bullish or bearish trends.
In August, the RSI was rejected at 50 and is currently falling, indicating a bearish trend for SHIB.
SHIB Price Prediction: What Is the Next Move?
An analysis of the daily timeframe does not provide clear confirmation of the trend’s direction for SHIB. Since mid-August, the price has been moving within a descending parallel channel.
While the price recently bounced off the channel’s support line on September 11, it was rejected at the resistance line on October 2. At the same time, the RSI failed to move above 50 and is now falling.
Based on this analysis, it is likely that SHIB will experience an 11% drop to the channel’s support line at $0.0000065.
Breakout Potential and Future Price Outlook
If SHIB manages to break out of the descending parallel channel, it may indicate that the correction is complete. In this case, a 30% increase to the next resistance level at $0.0000095 could be expected.
Hot Take: SHIB Price Faces Resistance and Bearish Momentum
The price of Shiba Inu (SHIB) has encountered a significant resistance level and has fallen below a key support area. The bearish signs in the RSI indicator further suggest a downward trend for SHIB. While there is potential for a breakout and subsequent price increase, the current outlook points towards a continuation of the decline. Traders and investors should closely monitor the price action and market developments to make informed decisions regarding their SHIB holdings.
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