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Shiba Inu (SHIB) price experienced a breakdown following a short-term formation that emerged on December 17, which was not a good sign for investors, especially after Bitcoin‘s recent drop. The question now is whether this breakdown is a precursor to a worse scenario or if the SHIB price can quickly recover.
Shiba Coin Comments
A closer look at the weekly price movement shows that after dropping to the level of $0.0000054 in June, SHIB price generally maintained an upward trend.
The upward movement that emerged after the sharp price action in November also resulted in a breakout from the decreasing resistance trend line that had been compressing the price for 480 days. Following the breakout, SHIB rose above a horizontal resistance area.
However, despite the breakout, SHIB did not show significant upward performance. On the contrary, after today’s sharp decline, it fell below the descending resistance trend line (green symbol) again.
On the other hand, more than 12 million SHIB tokens were burned in the last 24 hours, which represented an increase of over 300% compared to the previous day.
SHIB Price Prediction
While the weekly timeframe presents a neutral structure, a downtrend is noticeable in the daily timeframe, which can be attributed to price movements and RSI readings. The price action specific to SHIB reveals that the altcoin has been trading within a rising parallel channel since June 2023.
Such channels generally include corrective movements. Additionally, SHIB price has broken down from a symmetrical triangle formation today. This breakdown is of great significance as it could indicate the end of an uptrend and signal a potential decline.
At the time of writing, SHIB was trading around a minor support level of $0.0000095. The RSI also fell below 50, suggesting that the downtrend is continuing. If this trend persists, SHIB price could sustain a 20% drop and visit the channel’s support trend line at the $0.0000075 level.
Despite this bearish SHIB price outlook, if the $0.0000095 support level is maintained and held above, it could trigger a 35% rise towards the channel’s resistance trend line, which is $0.000013.
