Shiba Inu (SHIB) price has been falling since the resistance trend line rejected it on December 17, 2023.
Shiba Inu also fell below the short-term horizontal zone. Will we get it back, or will the downward movement continue?
Shiba Inu trade met with resistance
Technical analysis on daily time frames shows that Shiba Inu price has been trading within an upward parallel channel since June 2023. This increase led to a high of $0.00000120 on December 17, 2023.
Then, the channel’s resistance trend line rejected it and SHIB price began a downward trend thereafter.
At the beginning of the year, SHIB fell below the channel midline and then declined below the short-term horizontal area on January 21, 2024. Shiba Inu trades in the lower part of the channel.
The daily relative strength index (RSI) is bearish.
Traders use RSI as a momentum indicator to assess whether the market is overbought or oversold and whether to accumulate or sell.
If the RSI reading is above 50 and the trend is up, bulls still have an advantage, but the opposite is true if the reading is below 50.
RSI is falling below 50, which is all a sign of a bearish trend.
Read more: How to Buy a Shiba Inu (SHIB) and Everything You Need to Know
SHIB Price Prediction: How long will the correction last?
Similar to the daily time frame, the 6-hour chart suggests that SHIB price will continue to decline. This is due to price movements and RSI readings.
The price action shows that SHIB is trading in the lower part of a short-term descending parallel channel. Recently rejected by the midline (red circle).
RSI is falling below 50 in line with this bearish outlook.
Read more: Shiba Inu Burn Rate Explained: Understanding Token Burning
If SHIB price continues to decline, it could fall another 12% to reach the next nearest support at $0.0000077. This is a horizontal support area and coincides with the support trend lines of the long-term and short-term channels.
Despite this bearish SHIB price prediction, a recovery of the channel’s midline could lead to a 10% increase in the resistance trendline at $0.0000095.
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