Shiba Inu (SHIB) price has been falling since December 17, 2023, when the diagonal resistance trend line rejected it.
SHIB is trading below horizontal support and within a short-term bearish pattern.
Shiba Inu unites under resistance.
Technical analysis on the daily time frame shows that SHIB fell after it was rejected by the resistance trendline of the ascending parallel channel on December 17, 2023 (red icon).
SHIB initially bounced above the $0.0000093 support area before breaking down on January 22nd. SHIB found this as resistance (red circle) on January 29th and then fell.
The daily relative strength index (RSI) is trending downward. When assessing market conditions, traders use RSI as a momentum indicator to determine 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. The indicator failed several attempts to break above 50 (red circle) and traded below that level.
Read more: How to Buy a Shiba Inu (SHIB) and Everything You Need to Know
SHIB Price Prediction: What is the trend direction?
The outlook for the near-term 6-hour frame is similarly bearish. The chart shows SHIB trading within a descending triangle, which is considered a bearish pattern. As we are nearing the end of the pattern, a decisive move is expected soon.
Read more: Shiba Inu Burn Rate Explained: Understanding Token Burning
The 6-hour RSI supports the decline as it has rejected the 50 trend line (red icon).
If SHIB breaks out of the triangle, it could fall 16% to the channel support trendline at $0.0000076.
Despite this bearish SHIB price prediction, a breakout of the resistance trendline could lead to a 23% increase to the next resistance at $0.0000110.
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