Crypto News- In a detailed weekly analysis, it becomes evident that Shiba Inu has struggled to surpass a descending resistance trend line since August 2022. Last week marked the third unsuccessful attempt as the trendline rejected SHIB’s price ascent.
There’s a possibility that Shiba Inu is navigating within a descending wedge, although the support line (depicted as dashed) lacks sufficient validations to confirm this as a long-term pattern. The Relative Strength Index (RSI), a crucial momentum indicator, paints an uncertain picture for SHIB.
Shiba Inu: Unveiling Long-Term Patterns and Charting the Future Outlook
Traditionally, an RSI above 50 during an upward trend signals bullish control, while below 50 suggests the opposite. However, SHIB’s RSI is on the rise but remains below 50. Adding intrigue to the situation, the Shiba team unveiled an exciting announcement this week, teasing a guessing game related to the upcoming release of the second edition of The Shib Magazine and the chance to win 3,000 free NFTs.
Turning to the daily timeframe, the outlook for the altcoin is less definitive. On the positive side, SHIB managed to break out from a descending parallel channel, reclaiming the $0.00000840 area and reaching a high of $0.0000098. However, the subsequent rejection at the 0.618 Fib retracement resistance level led to a notable long upper wick (indicated in red).
Cryptocurrency trader Army_Shiba expresses bullish sentiments, anticipating a breakout that could propel SHIB above the $0.0000100 level. This upswing was preceded by a bullish divergence in the six-hour RSI (highlighted in green), often a precursor to upward movements. Yet, caution is warranted as the RSI has been declining over the past three days.
In conclusion, the future SHIB price trajectory hinges on whether it breaks below the $0.0000084 horizontal support area or successfully bounces above it. A breakdown could trigger a 15% drop to the nearest support at $0.0000070, while a bounce may propel Shiba Inu to a 25% increase, targeting the next resistance at $0.0000105.