The Shiba Inu (SHIB) price cleared an important resistance area. It could be in the first steps of a more significant upward movement.
The SHIB price is still struggling to move above the $0.0000110 resistance area. Doing so would confirm that the upward movement is in full swing. BeinCrypto Looks at key indicators to determine what’s next for Shiba Inu’s price.
Shiba Inu (SHIB) Price Clears Crucial Resistance
The daily time frame for Shiba Inu provides a bullish outlook. There are two main reasons for this.
Firstly, the Shiba Inu coin price broke out from a long-term descending resistance line that had been in place for 53 days. Breakouts from these structures usually mean that the previous correction has ended and a new upward movement is in store. In the case of SHIB, it likely means that the correction that began in February has now ended.
Secondly, the daily Relative Strength Index (RSI) moved above 50. The RSI is a momentum indicator, and movements above 50 are considered signs of a bullish trend. The RSI is a tool that helps traders understand if a crypto is overvalued or undervalued by measuring how quickly its price is changing. Furthermore, It looks at how fast and how big the price has moved recently to figure out if it might be time to buy or sell the crypto
Therefore, the daily time frame suggests that the trend is bullish, and an upward movement is expected. If this occurs, the next resistance would be at $0.0000135, the 0.618 Fib retracement resistance level. Fibonacci retracement levels operate as a set of horizontal lines derived from the Fibonacci sequence, which indicate areas where support and resistance may be encountered.
Shiba Inu (SHIB) Price Prediction
The technical analysis from the short-term six-hour time frame supports the bullish outlook from the daily one. The main reason for this is the creation of an ascending triangle. The ascending triangle is considered a bullish pattern that leads to breakouts the majority of the time.
The meme coin bounced at the triangle’s support line on April 12 (green icon) and is currently in the process of breaking out. A breakout that travels the entire patterns height would take the price to $0.0000135 (black arrow).
However, a close below the triangle’s support line would invalidate this bullish SHIB price prediction. In that case, the price could fall to the previous support at $0.0000100.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
