Shiba Inu (SHIB) could drop another 50%, and here's why
Date: 2023-07-02 Author: Karina Ziganova Categories: IN WORLD
Shiba Inu is trading below the long-term and short-term diagonal resistance levels.
The readings of different timeframes support the continuation of the decline. Thus, the bear market for SHIB may drag on.
Shiba Inu confirmed long-term pattern as resistance
Technical analysis of the weekly timeframe indicates a decidedly bearish outlook. This estimate is based on the breakdown of the symmetric triangle pattern that has existed since June 2022. Breakouts of such long-term patterns usually lead to steady downward movements.
After the breakdown, the SHIB price reached the horizontal support level at $0.0000058. However, the support line of the triangle rejected it (this moment is marked with a red icon on the chart), so the trend is likely to remain bearish.
The weekly Relative Strength Index (RSI) also hints at a continuation of the fall. Currently, the indicator is below 50.
SHIB price could drop to $0.0000020
Technical analysis of the daily timeframe coincides with the weekly one. This is due to price action and RSI readings.
Shiba Inu has been moving below a descending resistance line since early February. As long as this happens, the trend is considered bearish. On June 22, the asset made an attempt to break above it, but failed (this moment is marked with a red circle on the chart). At the same time, the daily RSI was deflected from the 50 line.
If the SHIB price breaks down the long-term area of $0.0000060, it could lead to a sharp drop to $0.0000020. However, consolidation above the resistance line will mean that the trend has changed to bullish. In this case, the meme coin has every chance to grow to $0.0000011, which coincides with the 0.5 Fibonacci level.
