Could Shiba Inu (SHIB) end February on a bullish note?

SHIB is trading in a corrective pattern

The daily timeframe shows that the popular memecoin has been trading inside an ascending parallel channel since June 2023. This rally culminated in a high of $0.0000120 on December 17th.. After this, SHIB began to decline along the descending resistance line and reached the bottom of the channel.

However, in February 2024, the Shiba Inu rate found its footing and broke through the downward trend line of resistance. Despite the breakout, the token was unable to move above the middle of the channel and bounced from there (red icon).

Source: TradingView

Daily Relative Strength Index (RSI) is giving unclear signals. The indicator is at the neutral level of 50 (green circle), demonstrating the absence of a directional trend.

SHIB forecast: should we expect further decline

The six-hour timeframe suggests further drawdown is likely. Here Shiba Inu is also trading at the bottom of the short-term rising parallel channel. The price declined after bouncing off the resistance line (red icon) on February 16th.

During this decline, the 6-hour RSI also dropped below 50 (red circle), which is a sign of a bearish trend.

A bearish breakout from the channel will confirm a downward movement. In this case, SHIB could fall 17% to the rising channel support line at $0.0000080.

Source: TradingView

Despite the bearish forecast, a bullish breakout from the ascending parallel channel will mean that the local bottom has already been reached. Then the price could rise by 16% to the next resistance at $0.0000110.

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