Shiba Inu (SHIB) Facing Uncertainty: Will It Find Solid Ground?
Date: 2023-12-27 Author: Dima Zakharov Categories: BLOCKCHAIN
Shiba Inu Breaks Resistance
In the weekly timeframe, Shiba Inu's price has been steadily rising since June when it bounced off a low of $0.0000054. The bullish momentum accelerated after forming higher lows in October.
After three unsuccessful attempts to break through (marked in red), SHIB finally breached the 475-day descending resistance line in December. It also closed above a crucial horizontal resistance area.
The Relative Strength Index (RSI) is above the neutral 50 mark and trending upwards, indicating a bullish trend. Notably, over 7.5 million SHIB tokens were burned in the last 24 hours. Additionally, the total value locked (TVL) in the Shibarium ecosystem recently surpassed $1 million, though it has slightly retraced since.
SHIB Price Forecast: Facing Potential Correction
In contrast to the weekly timeframe, the daily chart suggests a possible correction for SHIB. This is evident from the price action as SHIB was rejected at the resistance line of the ascending parallel channel on December 17th (marked in red). Subsequently, on December 23rd, it set a lower high.
Moreover, during this rebound, the daily RSI formed bearish divergence, which occurs when price rises while momentum decreases.
All these factors point to a potential further pullback, indicating that the coin might be in a correction phase. If the decline continues, the nearest support area lies approximately 12% below the current price at $0.0000095.
Bullish Breakout Potential
However, a bullish breakthrough from the channel could negate the correction scenario. In this case, the price might surge by 40% towards the next resistance level at $0.0000150.
