Shiba Inu (SHIB) price has fallen since a confluence of resistance levels rejected it on November 12.
The price is now trading in a critical horizontal support area. Will it bounce or break?
Shiba Inu does not break
Technical analysis of the weekly period shows that SHIB price has fallen below a descending resistance trend line since August 2022. So far, the trend line has been in effect for 470 days.
Shiba Inu was rejected by the trend line last week and the week before (red icons), starting the ongoing downward move. These were the third and fourth rejections of this trend line.
While SHIB price may be trading within a falling wedge, its (dashed) support line has not yet been validated enough times.
Read More: Shiba Inu (SHIB) Price Predictions
When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, the bulls still have an advantage, but if the reading is below 50, the opposite is true.
The weekly RSI is right at 50, indicating an indeterminate trend.
SHIB/USDT weekly chart. Source: TradingView
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What do the analysts say?
X cryptocurrency traders and analysts have a positive view on the future price of SHIB.
Shib Knight tweeted that
$SHIB has strong support. Price action is positive and developing slowly
It suggests that the trend is bullish as long as the price continues to follow the ascending support trend line.
SHIB/USDT daily chart. Source: X
MyAlgo, which uses a trading algorithm to enter and exit trades, stated that a bullish signal had been given, which was expected to push up the price of SHIB.
SHIB Price Prediction: Breakout or Breakout?
The outlook for the altcoin remains uncertain on the daily timeframe.
Despite a bullish breakout from a descending parallel channel, with SHIB reclaiming the $0.00000840 level and reaching $0.0000098, it faced rejection at the 0.618 Fib retracement resistance level. This resulted in a long upper wick, considered a sign of selling pressure.
The previous SHIB price rise was accompanied by a bullish divergence (green trend line) on the six-hour RSI, indicating a possible bullish move. A bullish divergence occurs when an increase in momentum accompanies a decrease in price.
However, it is important to note that the RSI has declined over the past three days and is now at the critical level of 50 (green circle).
Similarly, SHIB price has fallen since the rejection of the 0.618 Fib level. It is currently trading within the horizontal support area of $0.0000084.
SHIB/USD daily chart. Source: TradingView
In summary, SHIB future price prediction depends on whether it breaks below the horizontal support of $0.0000084 or bounces above it.
A breakout could lead to a 15% drop to the nearest support at $0.0000070, while a bounce could lead to a 25% rise, pushing Shiba Inu towards the next resistance at $0.0000105.
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