Shiba Inu (SHIB) is up 40% but cannot confirm the reversal
Date: 2023-07-15 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The price of Shiba Inu (SHIB) fell below the long-term pattern in early June. This suggests that the coin is in a long-term bearish trend
Despite this long-term bearish breakout, the price of the popular SHIB meme coin has broken through the short-term downward resistance line. Thus, long-term indicators contradict short-term ones.
Shiba Inu fell out of the long-term pattern
As the results of the technical analysis of the weekly chart show, Shiba Inu gives strong bearish signals. This prediction is based on a bearish breakout from a symmetrical triangle pattern that has been forming since June 2022.
A breakdown of this pattern, which lasted 350 days, should theoretically lead to a steady decline. After the breakout, the price briefly groped for support at $0.0000060, which it has not visited since the end of 2021.
However, the support line of the triangle eventually caused the price to rebound, which indicates the continuation of the bearish trend. The importance of this rebound increases as the triangle's support line also coincides with the horizontal resistance area of $0.0000080.
Moreover, the weekly Relative Strength Index (RSI), a widely used momentum indicator, also supports negative sentiment. It is below the 50 mark and is declining, indicating a bearish trend.
SHIB forecast: whether to hope for a bullish breakout
Unlike the weekly timeframe, the price dynamics and the RSI indicator on the daily chart give positive signals.
As you can see, since February, the price of SHIB has been moving along the downward resistance line, showing a bearish trend. On June 22, the token bounced off this line, confirming the negative trend. At the same time, during the same period, the daily RSI bounced off the 50 line (red circle), also reinforcing the strength of the bearish trend.
However, on July 13, the SHIB rate made a bullish breakout of this resistance line. Moreover, the RSI also rose above the 50 mark.
If the growth continues, SHIB may head towards the 0.5 Fibo resistance level of the correction at $0.000010.
However, it should be remembered that if the token falls below the resistance line, then the bullish breakout will be confirmed as invalid.
In this case, a decline to the next nearest support area at $0.0000050 is likely.
