The Shiba Inu (SHIB) price has decreased since several resistances rejected it on November 11.
Despite the decrease, SHIB is attempting to reclaim a key resistance level. Will it be successful?
Shiba Inu Falls After Rejection
The technical analysis of the daily timeframe shows that the SHIB price has fallen under a descending resistance trend line since the start of the year. The trend line rejected the price twice, most recently on November 11, creating successive lower highs.
The rejection caused a downward movement in the SHIB price that is still ongoing.
The SHIB price may have followed an ascending support trend line since June. Combined with the resistance, this would create a symmetrical triangle pattern. However, the support trend line has not been validated sufficient times.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI is at 50, a sign of an undetermined trend.
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What Do the Analysts Say?
Cryptocurrency trader and analyst John Morgan believes that the SHIB price is at risk of further downside due to a breakdown from a symmetrical triangle pattern.
However, several other accounts are bullish on the possibility of an increase due to a considerable bump in the SHIB burn rate.
More than 80 million Shiba Inu tokens were burned last week amidst speculation that the ecosystem will pivot towards artificial intelligence.
SHIB Price Prediction – Is the Bottom In?
A closer look at the daily timeframe gives a mixed reading for the altcoin. This is because of conflicting signs from the price action and the wave count.
The price action shows that the SHIB price was rejected by the 0.618 Fib retracement resistance level on November 11, creating a long upper wick (red icon) and falling. The decrease took the SHIB price below the $0.00000840 level, which is now likely to act as resistance.
However, the wave count suggests that the price has completed an A-B-C corrective structure.
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
Since the correction faces downward, it suggests that the Shiba Inu price trend is bullish.
Finally, the RSI is right at 50, indicating an undetermined trend.
Due to these mixed readings, whether the SHIB price moves above the $0.00000840 area or gets rejected will determine the future trend.
Breaking out from the $0.00000840 area will lead to a 30% increase to the next resistance at $0.0000105. However, a rejection from the area can lead to a 13% SHIB price decrease, validating the $0.0000070 area again.
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Disclaimer
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