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Shiba Inu Price Prediction December 2022: No Sizeable Gains Anytime Soon

2 mins
Updated by Geraint Price
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In Brief

  • SHIB is following a descending resistance line.
  • The daily RSI has generated bullish divergence.
  • There is resistance and support at $0.0000097 and $0.000076, respectively.
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The Shiba Inu (SHIB) price is attempting to move above a confluence of resistance levels near $0.00001. The initial readings suggest that it will be unsuccessful.

The Shiba Inu token price decreased below a descending resistance line since Aug. 14. The line rejected the meme coin several times between Oct. 28 and Nov. 4 (red circle). Afterward, a sharp drop followed, causing a breakdown from the $0.0000097 long-term horizontal area and a minimum price of $0.0000081. The area will now provide resistance. 

Despite the breakdown, the movement since has not been characterized by high volatility. At the time of writing, the Shiba Inu price was trading just below the $0.0000097 area, having been there over the past 24 hours.

Before the bounce, the daily RSI generated bullish divergence (green line). However, the indicator has yet to move above 50.

As a result of these readings, the Shiba Inu price prediction cannot be considered bullish. Only a breakout from the $0.0000097 resistance area would make it so. The area also coincides with the descending resistance line, increasing its legitimacy.

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

Shiba Inu Price Prediction: Rejection or Breakout?

The short-term four-hour chart does nothing to dissuade from the bearish SHIB price prediction. While the Shiba Inu token broke out from a descending resistance line, the entire movement looks like a corrective, A-B-C structure.

The main reason for this is the drop that led to the Nov. 22 low, which appears to be a three-wave structure (highlighted). Moreover, the ongoing increase has lagged the rest of the cryptocurrency market. 

Giving waves A:C a 1:1 ratio would lead to a high near $0.00001. Therefore, it will not cause a breakout above the previously outlined confluence of resistances.

So, the Shiba Inu price prediction remains bearish, unless the SHIB price manages to break out above $0.000097 decisively. Therefore, the most likely scenario is a gradual drop toward the $0.000076 support area.

Shiba Inu Short-Term
SHIB/USDT Daily Chart: Source: TradingView

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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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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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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