Bears on Shiba Inu tensed, SHIB broke through important resistance

Shiba Inu (SHIB) formed a bullish pattern inside the long-term horizontal support area. If the pattern is confirmed, the coin could rally aggressively As the results of the technical analysis show, the Shiba Inu project coin has been trading inside the “falling wedge” pattern since November 9. On December 16 and 28, the price bounced off the support line of this wedge (green icon) and began to rise. The rebound of the SHIB rate occurred against the backdrop of bullish divergence signals on the RSI, which enhances its significance. In addition, the RSI has now advanced above the 50 mark. On January 10, SHIB made a bullish breakout from a falling wedge.. To date, the price has managed to reach a high of $0.00000968. If the rise continues, immediate resistance will come into play at $0.00000106. It is represented by the Fibo level 0.382 retracement. On the other hand, a drawdown of the coin below the wedge resistance line will mean that the breakout turned out to be a false one and new lows are possible further. Source: TradingView Like the daily chart, the weekly timeframe is bullish as well. First, Shiba Inu formed a double bottom, which is considered a bullish pattern (green icons). This double bottom appeared inside the $0.0000083 long-term support area, making it more important. Secondly, the pattern was accompanied by bullish divergence signals on the weekly RSI (green line). Divergence is very rare on such long timeframes, so it could start a significant rally. On the weekly chart, the key resistance is located around $0.0000175 (average price). Its achievement would mean an increase in prices by 85% from current levels. Accordingly, if SHIB confirms the double bottom pattern, it will have significant upside potential.. Previously, the BeInCrypto editors said that the Shiba Inu project community is optimistic about the coming year 2023, waiting for the launch of the Shibarium layer 2 scaling solution. Source: TradingView Thus, the long-term outlook for Shiba Inu is bullish due to bullish signals on both the weekly and daily charts. Coin can launch a massive rally, at best 85% from current levels. A weekly close below the $0.0000083 support area will cancel this bullish scenario. In this case, the SHIB rate may weaken towards the next nearest support in the $0.0000060 area. Earlier, the editors of BeInCrypto discussed whether the recent sharp rise in the price of Bitcoin (BTC) can be considered the beginning of a bullish trend. Disclaimer All information contained on our website is published on the principles of good faith and objectivity, and for informational purposes only.. The reader is solely responsible for any actions taken by him on the basis of information received on our website.