The price of Shiba Inu (SHIB) fell below a long-term pattern in early June. This suggests that the coin is in a long-term bearish trend
Despite this long-term bearish breakout, the price of the popular SHIB meme coin has made a breakout of the short-term descending resistance line. This forecast is based on a bearish breakout from a symmetrical triangle pattern that has been forming since June 2022.
The breakout of this 350-day pattern should theoretically lead to a sustained decline. The importance of this bounce increases as the triangle support line also coincides with the horizontal resistance area of $0.0000080.
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Source: TradingView
The weekly relative strength index (RSI), a widely used momentum indicator, also supports the negative sentiment. It is below the 50 mark and declining, indicating a bearish trend.
SHIB outlook: whether to hope for a bullish breakout
In contrast to the weekly timeframe, the price dynamics and the RSI indicator on the daily chart are giving positive signals.
Since February, the SHIB price has been moving along the descending resistance line, showing a bearish trend. At the same time, during the same period, the daily RSI bounced off the 50 line (red circle), also reinforcing the strength of the bearish trend.
At the same time, the daily RSI bounced off the 50 line (red circle), also reinforcing the strength of the bearish trend.
On July 13, however, SHIB made a bullish breakout of this resistance line. Moreover, the RSI has also risen above the 50 mark.
If the upside continues, SHIB may head towards the Fibo 0.5 retracement resistance level at $0.000010.
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Source: TradingView
We should keep in mind, however, that if the token falls below the resistance line, the bullish breakout will be confirmed as invalid.
In that case, a decline to the next closest support area at $0.0000050 is likely.