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Can Shiba Inu (SHIB) Price Finally Move Outside 455-Day Pattern?

2 mins
Updated by Geraint Price
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In Brief

  • The Shiba Inu (SHIB) price has decreased below a crucial long-term descending resistance trend line for the past 455 days.
  • While the weekly time frame RSI is does not provide a clear reading, the daily timeframe price action gives a positive one.
  • Despite the bullish SHIB price prediction, a rejection from the 0.382 Fib retracement resistance level can cause a drop.
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The Shiba Inu (SHIB) price has nearly reached the resistance trend line of a long-term pattern.

The price broke out from a short-term corrective pattern. Can this be the start of a new bullish rally?

Shiba Inu Nears Long-Term Resistance

The weekly time frame technical analysis shows that the SHIB price has fallen under a descending resistance trend line since August 2022.

More recently, the trend line rejected the SHIB price in August (red icon), leading to a low of $0.0000066 in October.

The SHIB price could also be trading inside a descending wedge. However, its support line (dashed) has not been validated sufficient times. So, the SHIB price pattern is not confirmed yet.

Read more: Shiba Inu (SHIB) Price Predictions

Examining the Relative Strength Index (RSI), a crucial momentum indicator to analyze market conditions, it shows an uncertain reading for SHIB.

Typically, an RSI above 50 during an upward trend indicates bullish control, while an RSI below 50 suggests the opposite.

In the case of SHIB, the RSI is rising but remains below 50, indicating an undetermined trend.

SHIB/USDT Weekly Chart.
SHIB/USDT Weekly Chart. Source: TradingView

The Shiba team made a positive announcement this week, stating that:

“Big News! The Shib Magazine is here, your weekly ticket to the world of tech, finance, and more. Get your free NFT magazine cover for the first 1000 readers at https://news.shib.io#TheShibMagazine.”

Read more: Shiba Inu – A Beginner’s Guide

SHIB Price Prediction – Can Breakout Initiate Reversal?

The daily timeframe analysis presents a more optimistic outlook for the altcoin.

Until Aug. 14, SHIB’s price had been confined within a descending parallel channel, typically associated with corrective actions, hinting at a potential breakout.

On Oct. 22, SHIB successfully surpassed the trend line. This uptick was accompanied by a bullish divergence in the RSI (green), indicating a momentum increase following a price decrease.

Moreover, the RSI crossing above 50 suggests that the breakout in Shiba Inu is genuine and could lead to further upward movements.

Should the positive momentum persist, SHIB’s price might see a 37% increase, reaching the next resistance level at $0.0000110 and potentially triggering a breakout from the long-term descending resistance trend line. This could initiate a more prolonged bullish trend reversal.

SHIB Price Prediction
SHIB/USDT Daily Chart. Source: TradingView

Despite this optimistic SHIB price prediction, a failure to breach the 0.382 Fib retracement resistance level at $0.0000085 could result in a 15% decline, confirming the short-term horizontal support at $0.0000070.

For BeInCryptos latest crypto market analysis, click here.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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