Shiba Inu at a Crossroads: Support Break Weakens SHIB
Date: 2023-09-17 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Shiba Inu Heads South from Support
On the weekly chart, it's evident that the popular meme coin SHIB has been on a downward trajectory since August. Back then, the price rebounded from a descending resistance line (red arrow). The decline led to a breach of the critical support area at $0.0000080, which had served as support for most of the period from May 2022 to the present.
Currently, SHIB's price is on its way to the nearest support at $0.0000060. A drop to this level would signify an 18% further decline. Conversely, a bullish breakthrough above the $0.000080 area and the resistance line could pave the way for a 110% rise to the next resistance at $0.0000150.
Notably, despite these technical setbacks, the number of Shibarium wallets surpassed the significant milestone of 1 million in September.
The weekly Relative Strength Index (RSI) demonstrates a bearish trend. Simultaneously, when the price encountered resistance, the RSI indicator bounced off the 50 line (red circle) and is now below it. The combination of these factors points to a bearish trend for Shiba Inu.
SHIB Forecast: Loss of Support and Resumption of the Downtrend
Signals on the daily timeframe also indicate a bearish trend. This became evident as Shiba Inu's price fell below the ascending support line, present on the chart since June.
On August 17, the coin breached this line and confirmed it as resistance the following day (red arrow). Since then, SHIB's price has been decreasing, forming several lower highs.
The daily Relative Strength Index (RSI) also signals a bearish sentiment, as it is declining and currently below the 50 mark. Furthermore, the RSI does not show any signs of bullish divergence.
Therefore, the most likely forecast is a decline in SHIB towards the previously mentioned long-term support level at $0.0000060.
However, if SHIB manages to recover above $0.0000080, it would indicate a continuation of the bullish trend and negate the previous bearish breakout.
In such a scenario, the price could rise to the descending resistance line at $0.000010, which is 32% higher than the current price.
