When it comes to cryptocurrencies, Shiba Inu (SHIB), a major rival to DOGE, has been on a decline since December 17, 2023, unable to surpass a diagonal resistance trend line. During this period, SHIB was positioned below a horizontal support area and continued to trade within a short-term bearish formation. So, where could the SHIB price be heading?
Current State of Shiba Inu
According to the analysis of SHIB’s price, the meme coin has continued its decline after facing rejection at the resistance trend line of a rising parallel channel on December 17, 2023 (red symbol).
Initially, after rising above the $0.0000093 support area, SHIB experienced a sharp decline on January 22. As the calendar showed January 29, SHIB confirmed this level as a resistance zone (red circle) and has been on a downtrend ever since.
The Daily Relative Strength Index (RSI) also appears to be in a downtrend for SHIB. Investors use the RSI as a significant chart indicator to evaluate market conditions and to determine whether the market is overbought or oversold and if an asset is accumulating.
An RSI value above 50 indicates that if the trend is upward, the bulls are still at an advantage, while a value below 50 reveals the bears’ strength. The RSI, still in the neutral zone, could indicate sellers taking control if it drops below 50.
The indicator has made numerous unsuccessful attempts to rise above 50 (red circle) but has not managed to maintain it.
The Future of SHIB’s Price
The short-term six-hour outlook for SHIB also indicates a downward trend. According to the chart, SHIB continues to trade within a descending triangle, which is considered a bearish formation. Looking at the chart, it seems that the formation is nearing its end, suggesting an impending breakout may not be far off.
The six-hour RSI outlook reflects the existing trouble, facing rejection by the 50 trend line (red symbol). If SHIB experiences a downward breakout from the descending triangle formation, it could see a 16% drop to the channel’s $0.0000076 support trend line.
Despite the bearish trend dominating SHIB price predictions, a potential upward move could trigger a breakout from the resistance trend line and push the price to the next resistance at $0.0000110. This move could potentially pave the way for a 23% increase.
