The long-term pattern of Shiba Inu (SHIB) price remains the same, but its short-term pattern is at risk of collapsing.
Currently, SHIB price is trying to bounce at the support line of its short term pattern. It remains to be seen if the price can continue there or if the bearish move will escalate further.
Shiba Inu is gradually moving towards support
The daily time frame indicates that the price of SHIB has been trading inside a symmetrical triangle since June 2022. This type of pattern is neutral, which means that both a breakout and a breakdown are possible. The price is currently trading in the middle of the triangle, and it has been experiencing a downward trend since the rejection of the resistance line on February 4 (marked in red).
The daily reading of the Relative Strength Index (RSI) also supports the continuation of the decline. Traders use the RSI as a momentum indicator to assess whether the market is overbought or oversold and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, the bulls still have the advantage, but if the reading is below 50, the opposite is true. The RSI fell below 50 last week (red circle) and is now decreasing, indicating a downtrend.
If the decline continues, the triangle support line is located at $0.00000850.
SHIB Price Prediction: Is the correction complete?
Technical analysis from the short-term six-hour time frame provides mixed readings and an indefinite prediction for the price of SHIB. The reason for this comes from the price action.
On the upside, the SHIB token price is trading in a bearish parallel channel. A descending parallel channel is characterized by the price moving between two parallel resistance and support lines, a pattern generally considered bullish. Therefore, a breakout is the most likely outcome of this pattern.
On the downside, the meme symbol broke down from an ascending (dashed) support line. Breakdowns from these lines usually mean that the previous upward movement has ended.
Therefore, while the long-term SHIB price prediction is bearish, the short-term forecast is still undetermined. Whether SHIB price bounces at the current short-term pattern support line or breaks down is likely to determine the future direction. A bounce at the support line of the pattern could lead to an increase towards the price extreme at $0.0000170, while a breakdown from it is likely to lead to a drop to $0.00000850.
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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 providing 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.