Will SHIB End December on a Positive Note?
Date: 2023-12-23 Author: Dima Zakharov Categories: BLOCKCHAIN
Shiba Inu Consolidates Above Resistance
The price of Shiba Inu, the beloved meme cryptocurrency, took a nosedive in June, dropping to a low of $0.0000054. However, in October, the coin formed a higher low (green marker) and accelerated its upward trajectory.
Last week, SHIB reached a peak of $0.0000119, surpassing a long-standing horizontal resistance zone. Nevertheless, it failed to sustain its growth, forming a long upper wick (red marker).
As a result, the token retraced to a horizontal area that has alternated between support and resistance since May 2022.
Weekly RSI Indicator Suggests Bullish Trend
The weekly impulse RSI indicator is currently above the neutral level of 50 and is rising, indicating a bullish trend.
SHIB Forecast: Bullish Breakout or Pullback
While the weekly chart appears optimistic, the daily timeframe warns that the price may initially decrease before resuming its upward movement. This is indicated by the price dynamics and RSI index.
Price dynamics show that SHIB has been trading within an ascending parallel channel since June, a technical pattern often associated with corrective movements.
On December 17, the token reached the channel's resistance line (red marker) and rebounded, forming a bearish candlestick.
This retracement was accompanied by bearish RSI divergence (green color), which often precedes trend reversals.
If SHIB continues to decline, it may drop by an additional 12% to reach the nearest support level at $0.0000095.
Despite this short-term bearish forecast, a breakout above the channel's upper boundary would signal the end of the correction and could lead to a 40% rise in SHIB to the next resistance level at $0.0000150.
