The Shiba Inu SHIBUSD price attempted a breakout on November 27 but was unsuccessful, resulting in a decrease in price. Despite this decrease, SHIB is still trading within a corrective pattern, leading to questions about whether it will break out in the near future.
The technical analysis on the weekly timeframe shows that Shiba Inu has been decreasing since January and has been contained under a descending resistance trend line. This trend line has resulted in multiple rejections, with long upper wicks seen in November as a sign of selling pressure. Since the most recent rejection on November 27, the SHIB price has continued to fall. Additionally, since June, the SHIB price has also been following an ascending support trend line, creating a symmetrical triangle when combined with the aforementioned resistance.
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Traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset using the Relative Strength Index (RSI) as a momentum indicator. The daily RSI for SHIB is currently at 50, failing to confirm the trend’s direction. This suggests that the trend for SHIB is uncertain at this time.
On the six-hour timeframe chart, the SHIB price has been decreasing within a descending parallel channel since November 11. A breakout from this pattern is likely, as such channels usually contain corrective movements. Several factors, including Fibonacci retracement support levels and the burning of a large number of SHIB tokens, will likely determine the future trend’s direction for SHIB.
Cryptocurrency trader ChartMonkeyBTC believes that the SHIB price will increase significantly in the short term. However, the final decision on whether the SHIB price breaks out from the channel or gets rejected is yet to be determined.
The outcome of this will likely determine the future trend’s direction for SHIB. A breakout from the channel is predicted to lead to a 35% SHIB price increase, while failure to do so will result in a 10% drop. These potential outcomes will have a significant impact on the future of SHIB.