The long-term Shiba Inu (SHIB) pattern is still intact, but the price broke out from its short-term pattern on April 19th.
SHIB price is trying to find support at the nearest horizontal support level. Will it be able to do so, or will the downward movement accelerate further?
The price of the Shiba Inu is consolidating in the middle of the pattern
The daily time frame shows that the Shiba Inu price has been trading inside a symmetrical triangle since June 2022. The symmetrical triangle is a neutral pattern. This means that both hack and crash are possible.
Currently, the price is trading in the middle of the triangle, stuck in a bearish move that started after a rejection from the resistance line on February 4th (red icon).
During the price action within the triangle, the price bounces off both resistance and support lines before eventually making a decisive move outside of the pattern. If this holds true, SHIB will drop to the triangle support line at $0.0000085.
SHIB Price Prediction: More Downside Likely?
Technical analysis from the short-term six-hour time frame provides a bearish prediction for the Shiba Inu coin price. There are two reasons for this.
First, the price broke down from an ascending parallel channel. The channel has contained price action since March 12th. Thus, its collapse indicates that the previous bullish structure is no longer in place. Since the price has collapsed, the trend is likely to be down. Moreover, the failure to reach the resistance line of the pattern (red icons) also indicated that the trend was weakening.
Second, the six-hour RSI is below 50 and decreasing. The RSI is a momentum indicator that traders use to assess whether the market is overbought or oversold and to determine whether to accumulate or sell an asset. Readings above 50 and bullish indicate that the bulls still have an advantage, while readings below 50 indicate the opposite. The current bearish reading supports the breakdown of the pattern, which means that a drop to the $0.0000098 support area is likely. If it collapses from there, the meme coin could drop to the long-term triangle support line.
However, this bearish prediction for SHIB price will be invalid if the price regains the channel support line. In this case, the most likely forecast is for an increase towards the resistance line at $0.0000130.
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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.