Shiba Inu (SHIB) price fell after rejection of a long-term pattern on December 17, 2023.
SHIB is trading within a short-term correction pattern, falling below the horizontal support area.
SHIB attempts to withdraw support
Technical analysis on daily time frames shows that SHIB price has been trading within an ascending parallel channel since June 2023. This upward movement led to a high of $0.0000120 on December 17th. Afterwards, SHIB price was rejected (red icon), creating a resistance trendline for the channel.
SHIB has since fallen and is trading below the channel midline. It has also fallen below an important horizontal support line and is now testing as resistance.
The daily Relative Strength Index (RSI) gives a mixed reading, leaning towards the downside. 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. RSI is increasing but still trading below 50 (red circle).
Read more: How to Buy a Shiba Inu (SHIB) and Everything You Need to Know
SHIB Price Prediction: Breakout or Rejection?
Looking at the short-term 6-hour chart, we see that SHIB has entered a downward parallel channel following the rejection on December 17, as mentioned above. These channels often contain corrective movements. That said, in most cases a breakthrough is expected to occur.
However, SHIB was rejected today by the channel’s resistance trendline (red icon), creating a long upper wick. Additionally, the 6-hour RSI is below 50, indicating a bearish trend. If rejection continues, SHIB could fall 16% to $0.0000076, which is the channel’s support trendline and horizontal support zone.
Despite this bearish SHIB price prediction, the channel breakout could increase by 15% to the next resistance at $0.0000105.
Read more: Shiba Inu Burn Rate Explained: Understanding Token Burning
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