Bitcoin‘s price is currently struggling to reclaim the $42,000 mark, but it’s too early to celebrate. We have witnessed such rebounds often followed by rapid declines. For now, this caution is also feeding into the altcoins. So, what is the latest situation specifically for Shiba Coin?
Shiba Inu (SHIB)
Shiba Coin’s price has seen better performance days compared to Dogecoin. On the daily chart, we see that it has recovered within the rising parallel channel since June 2023 and reached its ultimate peak of $0.00000120 on December 17, 2023.
Then, unable to break the channel’s resistance, it turned its direction downward again. The decline accelerated with the latest BTC sales and eventually fell below the channel’s support line. The RSI still indicates a continuation of the decline on the daily chart. Since BTC has not yet convinced the markets of a clear rebound, it may not support altcoins until the weekly close.
Shiba Coin Commentary
The situation on the 6-hour chart is not much different from the negative reading on the daily chart. The main reason is the negative RSI and technical formation, similar to the daily chart. The Shiba Coin price, trading below the short-term descending parallel channel, does not yet appear to have completed the last correction.
The RSI confirms the bearish outlook. If the SHIB price continues to fall, it could drop by 12% to $0.0000077. This area has been a key level tested many times before and highlighted by us.
However, if the middle line of the channel is reclaimed, it would indicate the end of Shiba Coin’s correction, and the price could be expected to rise roughly 10% to $0.0000095. Shiba Coin, unable to diverge from the general market sentiment, has always been present in the hype category of every period. Without any ETF rumors emerging, the negative trend may continue.
In the coming period, the status of GBTC outflows, the reserve growth rate of other ETF issuers, and macro developments will be highly decisive for crypto. The nearest significant event is the weekly close in the following days and the subsequent Fed meeting. At this meeting, it is expected that Powell will do something to dampen optimism about interest rate cuts.
