The Shiba Inu (SHIB) price has traded inside a corrective pattern since a rejection on Nov. 11.
The price trades in the upper portion of the pattern, having made numerous failed breakout attempts. Will the next one be successful?
Shiba Inu (SHIB) Hovers Below Resistance
The technical analysis of the daily time frame shows that the Shiba Inu price has declined since January, staying below a descending resistance trend line.
Notably, this trend line has led to several rejections, with three occurring in November (red icons). These rejections, characterized by long upper wicks, indicate selling pressure. The latest rejection was on Nov. 27.
The SHIB price has also followed an ascending support trend line since June. Combined with the long-term descending resistance trend line, it forms a symmetrical triangle pattern.
Following the latest rejection on Nov. 27, SHIB’s price has experienced a further drop. Since June, there has been an ascending support trend line, establishing a symmetrical triangle when combined with the resistance above.
The Relative Strength Index (RSI) serves as a momentum indicator, aiding traders in assessing whether a market is overbought or oversold, influencing decisions to buy or sell an asset.
Bullish momentum is indicated when the RSI reading is above 50, and the trend is upward. Conversely, if the reading is below 50, the opposite holds true.
Currently, the daily RSI stands at 50, failing to confirm the trend’s direction.
Read More: Best Upcoming Airdrops in 2023
SHIB Price Prediction – Can Price Begin Recovery?
The six-hour time frame gives a similarly mixed reading.
The SHIB price has declined inside a descending parallel channel since Nov. 11, a pattern typically associated with corrective movements.
On Nov. 22, Shiba Inu rebounded at the 0.618 Fib retracement support level, aligning with the channel’s support trend line (green icon). However, a breakout from the channel did not occur.
Rather, the SHIB price is now consolidating under the channel’s resistance trend line.
Read More: Best Upcoming Airdrops in 2023
The six-hour RSI does not help confirm the trend’s direction, since the indicator is exactly at 50. As a result, whether the SHIB price breaks out from the channel or gets rejected will determine the future trend.
A successful breakout can lead to a 35% increase to $0.0000110.
On the other hand, a rejection from the channel can cause an 11% drop to the closest support at $0.0000072.
For BeInCrypto‘s latest crypto market analysis, click here.
Disclaimer
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 Conditions, Privacy Policy, and Disclaimers have been updated.
