The resistance trend line of a long-term pattern rejected the Shiba Inu (SHIB) price last week.
The rejection coincided with a shorter-term Fib retracement resistance level. Will SHIB eventually break out?
Shiba Inu (SHIB)Gets Rejected From 460-Day Resistance
The weekly time frame technical analysis reveals that Shiba Inu has decreased below a descending resistance trend line since August 2022.
More recently, the trendl ine rejected the SHIB price last week (red icon). This was the third unsuccessful breakout attempt.
It is possible that the Shiba Inu price trades inside a descending wedge, although the support line (dashed) hasn’t been validated enough times to confirm this long-term pattern.
Read more: Shiba Inu (SHIB) Price Predictions
Analyzing the Relative Strength Index (RSI), a key momentum indicator reveals an uncertain situation for SHIB.
Typically, an RSI above 50 in an upward trend signals bullish control, while below 50 suggests the opposite. However, in SHIB’s case, the RSI is rising but remains below 50.
The Shiba team made an exciting announcement this week, while introducing a guessing game:
“With the upcoming release of the second edition of The Shib Magazine, we’re giving away 3,000 free NFTs!
“But wait, there’s an even bigger reveal in store! Let’s spice things up with a quick guessing game.
“Can you guess who will grace the cover of our second edition? (HINT: They’re a renowned athlete!)”
Read more: Shiba Inu – A Beginner’s Guide
SHIB Price Prediction – Can Breakout Initiate Reversal?
The daily time frame does not provide a decisive outlook for the altcoin.
On the bullish side, the SHIB price broke out from a descending parallel channel. It reclaimed the $0.00000840 area and reached a high of $0.0000098. However, the price was rejected by the 0.618 Fib retracement resistance level afterward, creating a long upper wick (red icon).
Cryptocurrency trader Army_Shiba is bullish about the prospects for the price. He believes the ensuing breakout will take SHIB above the $0.0000100 level.
The increase was preceded by a bullish divergence in the six-hour RSI (green). This is a positive sign that often precedes upward movements. However, the RSI has been falling over the past three days.
To conclude, the future SHIB price prediction will be determined by whether the price breaks down from the $0.0000084 horizontal support area or bounces above it instead.
On one hand, a breakdown can trigger a 15% drop to the closest support at $0.0000070. On the other hand, a bounce can lead to a 25% Shiba Inu increase to the next resistance at $0.0000105.
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.
