#ShibaInu #SHIB #Cryptocurrency #TechnicalAnalysis #BearishTrend #PricePrediction #MarketAnalysis #CryptoTrading
Since December 27, 2023, the price of Shiba Inu (SHIB) has been on a downtrend, breaking through a crucial horizontal support area and signaling a stronger bearish momentum in the market. The price pattern for SHIB has shifted into a short-term bearish trend, with indications that further declines could be imminent. This recent price movement is noteworthy because SHIB had been trading within an ascending parallel channel since June 2023, achieving a peak price of $0.0000120 on December 17. The downturn was initiated following a rejection at the channel’s resistance trendline, marking a significant shift in market sentiment towards SHIB.
The detailed technical analysis on the daily timeframe illustrates that SHIB’s price downfall is not just a minor correction but part of a broader bearish pattern characterized by a descending resistance trendline beginning from the aforementioned peak. The breach below the horizontal resistance area, which is now acting as resistance, further validates this bearish stance. Moreover, the daily Relative Strength Index (RSI) provides a bearish reading below 50, underscoring the strength of the bearish trend. In the short-term perspective, SHIB has formed a descending triangle over the past 27 days, a pattern typically indicative of a continuation in the downtrend. The six-hour RSI supports this bearish outlook as it remains below 50 and continues to fall. This technical setup suggests that if the current bearish momentum persists, SHIB’s price could see a further decline of 14% to reach the channel’s ascending support trend line at $0.0000078. However, it’s important to note that a move above the triangle’s resistance trendline could negate this bearish scenario, potentially leading to a 25% price increase to the next resistance level at $0.0000110.
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