Justin Sun Withdraws $6 Million in Shiba Inu from Binance
Date: 2023-12-20 Author: Dima Zakharov Categories: BUSINESS
Shiba Inu's Failed Breakout
Technical analysis of the daily timeframe reveals that SHIB has been trading within an ascending parallel channel for over a year now. This channel has repeatedly confirmed its boundaries as both resistance and support levels.
Just recently, on October 19th, the meme coin bounced off the support line, accelerating its growth pace. This rally pushed SHIB's price to reach a high of $0.0000119. Shiba Inu also breached the resistance line of the channel and surged out of the horizontal resistance area.
However, this upward momentum couldn't be sustained, and on the same day, SHIB's price dropped.
Source: TradingView
The Relative Strength Index (RSI) is currently above 50 but has started to decline. Additionally, RSI has formed a bearish divergence, which is considered a sign of a trend reversal to the downside.
Analyst Insights
Crypto analyst and Head of Global News at BeInCrypto, Ali Martinez, believes that SHIB may be on the verge of a breakthrough.
"Shiba Inu is showing signs of a breakout! If $SHIB holds the crucial support level of $0.0000103, the next stop could be $0.0000140," he wrote on Twitter.
Source: Twitter
It's worth noting that TRON founder Justin Sun withdrew $6 million worth of SHIB from Binance in two transactions. Surprisingly, the meme coin's price has not yet reacted to this event.
Price Forecast for SHIB: Will the Next Attempt Be Successful?
Similar to the daily chart, the 3-day chart does not confirm the trend direction. It shows that SHIB has been moving within a descending parallel channel since August 2022, with its boundaries repeatedly confirmed.
Although the meme coin briefly rose above the resistance line yesterday, it failed to sustain the growth and dropped below it. This resulted in the formation of a long upper wick, considered a sign of selling pressure. Nevertheless, Shiba Inu continues to trade above the horizontal area of $0.0000100.
Therefore, the future trend direction will depend on whether SHIB exits the channel or breaks down below the $0.0000100 level.
Source: TradingView
A breakout could trigger a 40% rise to the next resistance level at $0.0000145. Conversely, a breakdown could potentially lead to a 22% decline towards the nearest support at $0.0000080.
