Shiba Inu (SHIB) Approaching Annual Minimum: Reversal Forecast

Shiba Inu (SHIB), one of the most discussed meme cryptocurrencies, is at the center of investors' attention as its price declines, approaching annual lows. Since the beginning of August this year, the SHIB price has been in a downward trend, causing concerns among holders of this cryptocurrency.

Several factors need to be considered when analyzing this situation. Since early August, Shiba Inu has been experiencing a price decrease, starting with a deviation from a long-term descending resistance that began in August 2022. This event marked the starting point for the downward movement and the formation of a negative trend. The crucial point is that the price has also fallen below a critical horizontal support area at the $0.0000080 level. This area has served as robust support for SHIB for over a year, and its breach has raised concerns among investors.

The analysis of technical indicators generates mixed signals regarding the future movement of Shiba Inu's price. The Relative Strength Index (RSI) is sending bearish signals. In August, the indicator rebounded from the 50 level, which is typically considered a significant threshold, and is currently in a downward trend, indicating the relative weakness of the cryptocurrency.

The analysis of the daily timeframe provides more complex results. Since August 14th, the SHIB price has been decreasing within a descending parallel channel. Such patterns often contain corrective movements, which may suggest a breakout in the near future.

It is important to note that the movement inside the channel has reached both support and resistance levels, indicating some uncertainty in the market. The daily RSI is also sending mixed signals, as despite its increase, the index is still below the 50 level.