See More

Shiba Inu (SHIB) Approaches Yearly Lows – Is a Turnaround on the Horizon?

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • The Shiba Inu (SHIB) price has fallen since August. At the time, a long-term descending resistance trendline rejected it.
  • The weekly timeframe readings are decisively bearish. However, the daily timeframe provides a mixed future outlook.
  • Whether the SHIB price breaks out from its descending parallel channel or gets rejected can determine the future trend.
  • promo

The Shiba Inu (SHIB) has been on a downtrend since August, nearing its lowest point of the year.

During this period, it also slipped below the $0.0000080 support level, which had provided support for more than a year.

Shiba Inu Approaches Yearly Lows

The weekly timeframe analysis shows a Shiba Inu downtrend in place since a long-term descending resistance line rejected the price in August. The trendline has stood for 434 days.

Since the rejection, the altcoin also fell below a critical horizontal support area at $0.0000080. The support has been in place for a year, with the exception of a deviation in June (green circle).

After such a breakdown, the price often retests the same area and confirms it as resistance.

This, however, was not the case with Shiba Inu. Rather, the meme coin just resumed its descent.

Shiba Inu (SHIB) Price Movement
SHIB/USDT Weekly Chart. Source: TradingView

The Relative Strength Index (RSI), a crucial indicator for traders to determine market conditions, has shown a bearish reading for the cryptocurrency.

RSI values above 50, combined with an upward trend, usually indicate a bullish market, while values below 50 suggest the opposite.

In this instance, the RSI was rejected at the 50 level in August (red circle) and is currently downward.

SHIB Price Prediction: Will Price Fall to Yearly Low?

The daily timeframe analysis gives mixed readings. The SHIB price has decreased inside a descending parallel channel since August 14.

These channels usually contain corrective movements, meaning that an eventual breakout will be the most likely future outlook for the altcoin.

While trading inside the channel, the SHIB price has reached both the support (green icon) and resistance trendlines (red icon). It is currently close to the channel’s resistance line.

The RSI also gives mixed readings. While the indicator is increasing, it is still below 50 (red circle).

Shiba Inu (SHIB) Price Prediction
SHIB/USDT Daily Chart. Source: TradingView

Therefore, the Shiba Inu price prediction will determine whether a breakout or a rejection from the channel’s resistance line occurs.

In case of a breakout, SHIB can increase by 30% to $0.0000095. On the other hand, rejection can lead to a 13% drop in the channel’s support line at $0.0000063.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto platforms in the US | March 2024

Trusted

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Valdrin-Tahiri.jpg
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)
READ FULL BIO
Sponsored
Sponsored