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Shiba Inu (SHIB) Price Dips After Shibarium Launch: This Support Holds the Answers

2 mins
Updated by Ryan James
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In Brief

  • The Shiba Inu (SHIB) price has increased by 50% since its yearly low in June. The upward movement reclaimed a horizontal area which is now expected to provide support.
  • The weekly indicator readings and price action are undetermined. While the upward movement and reclaim are bullish signs, the failure to break out last week casts doubt into the increase.
  • Despite this bullish SHIB price prediction, breaking down from the current ascending support line will mean that the upward movement is not legitimate.
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The Shiba Inu (SHIB) price has increased by 50% since its June lows, reclaiming the $0.0000080 area in the process.

However, the price fell sharply last week, doubting the entire previous increase.

Shiba Inu (SHIB) Price Bounces but Fails to Break Out

The SHIB price began upward after falling to a low of $0.0000054 on June 10. So far, the price has increased by 50%. Moreover, it reclaimed the $0.0000080 horizontal area.

This was an especially crucial development since it indicated that the previous breakdown was invalid. So, the area is now expected to provide support again.

Despite the bounce and increase, the SHIB price still trades below a descending resistance line in place since September 2022. A breakout from the line is required to confirm the bullish trend reversal. In that case, the SHIB price can increase by another 85% and reach the $0.0000150 resistance area.

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

The weekly RSI is undetermined. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator moves above and below 50 (green circle), indicating an undetermined trend.

Shibarium, the Shiba Inu layer-2 blockchain, launched on August 16. However, the launch was plagued by numerous issues, such as $1.7 million worth of ETH being stuck on the Shibarium bridge. Despite this setback, the Shibarium team announced a $2 million insurance coverage fund to reassure the community.

SHIB Price Prediction: Will Support Area Hold?

The daily timeframe readings also present an undetermined trend.

On the bullish side, the SHIB price broke out from a descending resistance line on July 12. This led to an upward movement that took the SHIB price above the 0.5 Fib retracement resistance level at $0.0000103. However, the price faced rejection (indicated by the red icon) and has subsequently fallen.

The SHIB price now trades close to its pre-breakout levels.

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

Similarly to the weekly timeframe, the daily RSI gives a mixed reading. The indicator moves freely above and below 50, indicating an undetermined trend.

To conclude, the future SHIB price prediction depends on whether the price closes below the $0.0000080 area or bounces inside it. In case of a bounce, the price can increase by 85%. However, a breakdown can lead to at least a 25% decrease to the closest support of $0.0000060.

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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.

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...