The Shiba Inu (SHIB) price has experienced a decline since December 17, 2023, with the decrease accelerating on January 3 of this year. However, SHIB has managed to avoid breaking below a critical horizontal support area. The question now is whether it will continue to recover.
Shiba Inu Fails to Clear Resistance
On the weekly time frame chart, it is evident that the SHIB price has been falling since January 2023 and has been trading below a horizontal resistance area since April. Although there was an increase in the price afterward, SHIB failed to break out from the resistance area and was rejected twice, resulting in long upper wicks that indicate selling pressure. This week, the price fell sharply but managed to recover during the past two days.
SHIB Price Prediction: Is the Trend Bullish or Bearish?
Similar to the weekly time frame, the daily outlook for SHIB is neutral due to mixed readings from the price action and the RSI. The price action suggests that SHIB has been trading within an ascending parallel channel since June 2023, with recent rejection at the channel’s resistance trend line leading to a decline in price. However, despite reaching a low on January 3, 2024, the price bounced back and avoided breaking down from a support area. The daily RSI fell below 50, indicating a bearish trend. Whether SHIB bounces or breaks down from its current level will determine its future price trend.
Hot Take: What Lies Ahead for Shiba Inu?
As SHIB continues to navigate its recovery, it remains uncertain whether it will break out from its current resistance or experience further decline. With support and resistance levels playing a crucial role in determining its future price movement, traders and investors should closely monitor these key levels before making any decisions. Additionally, factors such as token burns can also impact SHIB’s performance in the market. As the crypto market remains highly volatile, it is important to stay updated with the latest developments and trends surrounding Shiba Inu.
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