The Shiba Inu (SHIB) price fell below a long-term pattern at the beginning of June, suggesting that the price is in a long-term bearish trend.
Despite the long-term breakdown, the SHIB price fell from a short-term descending resistance line. Therefore, the long-term readings are not in alignment with the short-term ones.
Shiba Inu Price Struggles to Reclaim Lost Long-Term Pattern
According to the technical analysis conducted on a weekly timeframe, the Shiba Inu price is facing a strong bearish outlook. This prediction is based on the breakdown of a symmetrical triangle pattern that had been forming since June 2022.
The breach of this pattern, after being in place for 350 days, typically leads to sustained downward movements. After the breakdown, the price briefly found support at $0.0000060, a level not seen since the end of 2021.
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However, the triangle’s support line ultimately rejected it, indicating a continuing bearish trend. The importance of the rejection is increased since the triangle’s support line also coincides with the $0.0000080 horizontal resistance area.
Furthermore, the weekly Relative Strength Index (RSI), a commonly used momentum indicator, supports the bearish sentiment. Traders often rely on the RSI to determine whether a market is overbought or oversold and make decisions accordingly.
In this case, the RSI reading is currently below 50 and declining, indicating a bearish trend.
SHIB Price Prediction: Will Price Manage to Break Out?
Unlike the weekly time frame, the price movement and RSI indicator analysis on the daily time frame show a bullish trend.
Since February, the SHIB price has been consistently below a descending resistance line, indicating a bearish trend. The rejection of the line on June 22 supported this trend.
Additionally, during the same period, the daily RSI was rejected at the 50 line (red circle), which supports the validity of the bearish trend.
However, the SHIB price broke out from the resistance line on July 13. Moreover, the RSI moved above 50 during this time.
If the increase continues, the SHIB price can move to the 0.5 Fib retracement resistance level at $0.000010.
However, it’s worth noting that if the SHIB price falls below the resistance line, it will invalidate the breakout.
In that case, it can decrease to the next closest support area at $0.0000050.
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