Shiba Inu (SHIB) Price Forecast and Prospects for Ending the Ongoing Decline
Date: 2023-10-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Since the sudden surge of Shiba Inu (SHIB) in August, when the coin showed a significant increase after a prolonged slump, the cryptocurrency market has been experiencing turbulence. However, recent developments indicate that the price of SHIB continues to fall.
This decline has raised questions among investors: why is this happening, and what can be expected in the future?
In August of this year, the price of SHIB rebounded from a long-term descending resistance trendline, giving hope that the coin might start an upward trend. However, instead of that, the price continued to decline, dropping below the key horizontal support area at around $0.0000080. This scenario has raised concerns and questions about when this decline will come to an end.
On the weekly technical chart, it is evident that the price of SHIB has been on a downtrend since the surge in August, suggesting that the bearish trend is solidifying. The chart also shows that the price dropped below the horizontal support area at $0.0000080, which previously played a significant role as a support level. It's worth noting that, despite some price deviations in July, this area maintained its role for over a year.
Typically, after a price breaks below a support level, it returns to this area to confirm it as resistance. However, in the case of SHIB, this has not happened, and the coin continues to lose value, raising concerns among investors.
The weekly Relative Strength Index (RSI) also does not bring good news for SHIB holders. This momentum indicator bounced off the 50 level in August and has been on a decline since. This indicates that the bearish trend has a strong influence on the market.
Possible Scenarios and Forecast for Shiba Inu (SHIB)
On the daily chart, it is observed that the price of SHIB has been within a descending parallel channel since August 14th. Recently, the price bounced off the lower support line of this channel but failed to surpass the upper resistance line. This event was accompanied by a rebound of the RSI, which also failed to cross the 50 level and is currently trending lower.
Considering the current situation, the most likely scenario is a further decline in the price of SHIB by 11% to the channel's support line at $0.0000065. This could raise concerns among investors. However, despite the bearish forecast, there is a possibility that a bullish breakout from the channel could signal the end of the correction.
In the event of a bullish breakout from the channel, SHIB may start to rise and reach the next resistance level around $0.0000095, representing a potential 30% increase. This provides hope for a recovery in SHIB's price. Still, investors should remain vigilant and monitor market dynamics.
In conclusion, amid the current price decline of Shiba Inu (SHIB), there is uncertainty regarding the coin's future movements. Investors anticipate that the cryptocurrency market will continue to provide news and events that will impact SHIB, and they are closely monitoring developments.
