2023-4-24 18:15 |
The long-term pattern for the Shiba Inu (SHIB) price remains intact, but its short-term pattern is at risk of breaking down.
Currently, the SHIB price is attempting to bounce at the support line of its short-term pattern. It remains to be seen if the price can hold there or if the downward movement will escalate further.
Shiba Inu Gradually Moves Toward SupportThe daily time frame indicates that the SHIB price has been trading inside a symmetrical triangle since June 2022. This type of pattern is neutral, implying that both a breakout and a breakdown are possible. The price is currently trading in the middle of the triangle, experiencing a downward trend since the resistance line rejection on February 4th (marked in red).
SHIB/USDT Daily Chart. Source: TradingViewThe daily Relative Strength Index (RSI) reading also supports the continuation of the drop. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The RSI fell below 50 last week (red circle) and is now decreasing, indicating a bearish trend.
If the decrease continues, the triangle’s support line will be at $0.00000850.
SHIB Price Prediction: Is Correction Complete?The technical analysis from the short-term six-hour time frame provides conflicting readings and an undetermined SHIB price prediction. The reason for this comes from the price action.
On the bullish side, the SHIB token price trades in a descending parallel channel. The descending parallel channel is characterized by the price moving between two parallel resistance and support lines, a pattern that is generally considered bullish. Therefore, a breakout is the most likely outcome of this pattern.
On the bearish side, the meme token broke down from an ascending support line (dashed). Breakdowns from such lines usually mean that the preceding upward movement has ended.
SHIB/USDT Six-Hour Chart. Source: TradingViewSo, while the long-term SHIB price prediction is bearish, the short-term one is still undetermined. Whether the SHIB price bounces at the current short-term pattern’s support line or breaks down will likely determine the future trend. A bounce at the pattern’s support line could initiate an increase toward a maximum price of $0.0000170, while a breakdown from it will likely cause a drop to $0.00000850.
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The post Shiba Inu (SHIB) Price Nearing Crucial Tipping Point: What to Expect appeared first on BeInCrypto.
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