Shiba Inu Price Analysis: Bearish Trends and Future Predictions

Shiba Inu Price Analysis: Bearish Trends and Future Predictions

Crypto News – The price dipped below the $0.0000080 horizontal support level during this decline.

Rejection Leading to Support Breakdown

Analysis of the Shiba Inu weekly timeframe reveals a decline in SHIB price subsequent to being rejected by a long-standing descending resistance trendline in August (indicated by the red icon).

This resistance trendline has persisted for an impressive 420 days.

Throughout this decline, the altcoin fell beneath the $0.0000080 horizontal region, aside from a deviation noted in July (marked by the green circle). For over a year, this area had served as a reliable support.

Typically, after a breakdown, it is expected for the price to retest the same area and confirm it as resistance. However, this anticipated behavior was not observed for the SHIB price, as it continued its downward trajectory.

The weekly Relative Strength Index (RSI) reflects a bearish reading. RSI is a momentum indicator utilized by traders to assess whether a market is overbought or oversold, influencing decisions to accumulate or sell an asset.

Readings above 50, along with an upward trend, suggest that the bulls maintain an advantage, while readings below 50 signify the opposite.

In August (denoted by the red circle), the RSI was rejected at the 50 mark and has since been on a decline. These developments collectively indicate a bearish trend.

SHIB Price Prediction: What Comes Next?

Commencing from August 14, the SHIB price has been on a downward trajectory within a descending parallel channel. More recently, on September 11 (highlighted by the green icon), the price experienced a bounce at the support line of this channel.

Although the meme coin approached the channel’s resistance line, it faced rejection on October 2, and its price has been falling since. Concurrently, the RSI failed to surpass the 50 mark (as shown by the red circle) and is currently on a decline.

Consequently, the most probable future scenario for the cryptocurrency involves an 11% drop to the channel’s support line at $0.0000065.

Despite this bearish SHIB price prediction, a breakout from the channel would indicate the completion of the correction.

In such an event, a 30% increase towards the subsequent resistance at $0.0000095 is the most likely future price outlook.