The Shiba Inu (SHIB) price shows bullish signs above a critical support area. A considerable bounce could follow in the near future.
Along with the rest of the cryptocurrency market, Shiba Inu had a tumultuous 2022 which saw the meme coin price fall by more than 75%. However, 2023 offers new hope in the form of positive Shiba Inu news. The community anticipates the release of Shibarium, the Layer 2 scaling solution that is being developed by the Shiba Inu team.
The Shiba Inu price also shows some bullish signs indicating a rally could be nearing.
Bounce at Support?
The technical analysis from the daily time frame shows that the Shiba Inu price has fallen below a long-term descending resistance line since Aug. 14. The line caused numerous rejections in late Oct.-early Nov. (red circle), preceding a price collapse.
However, the price action during the past 30 days is more bullish. The SHIB price has bounced at the $0.0000080 horizontal support area, while the daily RSI has generated bullish divergence (green line). Moreover, the indicator has broken out from a descending resistance line (black) and could soon move above 50. These are all considered bullish signs.
While the daily time frame indicates that an upward movement will occur, the SHIB price is still trading below the descending resistance line. Until it breaks out and then reclaims the $0.0000098 resistance area, the trend cannot be considered bullish.
On the other hand, a daily close below $0.0000078 could lead to a price plunge.
SHIB Short-Term Price Prediction: Upward Movement
Similar to the daily time frame, the six-hour time frame provides a bullish SHIB short-term price prediction. There are two main reasons for this:
Firstly, the SHIB price is trading inside a descending wedge, which is considered a bullish pattern.
Secondly, the six-hour RSI has generated bullish divergence (green line) and has now moved above 50. The fact that the divergence occurs at the support line of a descending wedge increases its legitimacy.
If a SHIB price breakout follows, the next resistance would be at $0.0000102. This is very close to the previously outlined long-term resistance area.
As a result, the reaction of the price once it gets there could determine the future trend.
To conclude, due to bullish readings in both the daily and six-hour time frames, the most likely Shiba Inu price analysis is a breakout from the short-term wedge, which could initiate an upward movement of more than 20%.
Afterward, the direction of the long-term trend is still unclear. Positive Shiba Inu news in the form of the release of Shibarium could aid this possibility. On the other hand, a daily close below $0.0000078 would invalidate this bullish hypothesis.
For BeInCrypto’s latest crypto market analysis, click here
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.