Shiba Inu Price at a Crossroads – Anticipating the Breakout Direction of the Pattern

Shiba Inu (SHIB) has been confined within a corrective pattern since facing rejection on November 11, creating a sense of uncertainty among traders. Despite multiple attempts to break out, the price has consistently faltered in the upper part of the pattern, prompting speculation on the potential success of the next breakout.

Shiba Inu Price at a Crossroads – Anticipating the Breakout Direction of the Pattern

A closer examination of the daily time frame reveals a persistent downtrend in SHIB’s price since January, consistently held below a descending resistance trend line. This trend line has played a pivotal role in shaping the market dynamics, marked by notable rejections, including three instances in November (highlighted by red icons). These rejections, characterized by extended upper wicks, signify notable selling pressure, with the most recent occurring on November 27.

Adding complexity to the price action, SHIB has adhered to an ascending support trend line since June. When combined with the enduring descending resistance trend line, it forms a symmetrical triangle pattern.

Following the latest rejection on November 27, SHIB’s price experienced a subsequent decline. The interplay between the ascending support trend line since June and the overarching descending resistance trend line has solidified the symmetrical triangle pattern.

The Relative Strength Index (RSI), a key momentum indicator, aids traders in gauging whether a market is overbought or oversold, thereby influencing decisions to buy or sell. A bullish scenario is suggested when the RSI reading exceeds 50, indicating upward momentum. Conversely, a reading below 50 suggests a bearish trend.