Shiba Inu (SHIB) price has cleared an important resistance area. It could be in the first steps of a more significant upward movement.
Chip price is still struggling to move above the $0.0000110 resistance area. Doing so will confirm that the upward movement is in full swing. BeinCrypto looks at the main indicators to determine the next move for the Shiba Inu price.
Shiba Inu (SHIB) price clears crucial resistance
The Shiba Inu daily time frame provides a bullish outlook. There are two main reasons for this.
First, the Shiba Inu coin price broke out from a long-term bearish resistance line that had been in place for 53 days. Breakouts from these structures usually mean that the previous correction has ended and a new upward move is in store. In the case of SHIB, that likely means that the patch that started in February is now over.
Secondly, the daily relative strength index (RSI) has moved above the 50 level. The RSI is a momentum indicator, and movements above 50 are considered as bullish signals. The RSI is a tool that helps traders understand whether a cryptocurrency is overvalued or undervalued by measuring how quickly its price is changing. Furthermore, it looks at how fast and how far the price has moved recently to see if it is time to buy or sell the cryptocurrency.
Therefore, the daily time frame indicates that the trend is up, and an upward movement is expected. If this happens, the next resistance will be at $0.0000135, which is the 0.618 Fibonacci retracement resistance level. Fibonacci retracement levels act as a set of horizontal lines derived from the Fibonacci sequence, which indicate areas where support and resistance may be encountered.
Shiba Inu (SHIB) price predictions
Technical analysis from the short-term six-hour time frame supports the bullish outlook on the daily chart. The main reason for this is the creation of an ascending triangle. The ascending triangle is a bullish pattern that leads to breakouts most of the time.
The meme coin bounced at the triangle support line on April 12 (green icon) and is currently in the process of breaking out. A breakout that goes through the entire pattern higher will take the price to $0.0000135 (black arrow).
However, closing below the triangle support line would invalidate the bullish SHIB price prediction. In this case, the price could drop to the previous support at $0.0000100.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.