Shiba Inu forecast for January: what will determine the future trend

Shiba Inu (SHIB) price may make a bullish breakout from a short-term pattern, but the direction of the longer-term trend is still unclear Shiba Inu is approaching support According to the results of technical analysis, the Shiba Inu project coin has been declining since August 14, remaining below the descending resistance line. In late October – early November, the price bounced off this line several times, after which it fell sharply (red circle). In the process of falling, the SHIB rate broke through the $0.0000098 support area, and on December 5 tested it for strength as a resistance (red icon). After that, the coin fell and on December 19 tested support in the $0.0000080 area. Despite the subsequent bounce, the price shows no signs of a bullish reversal. The daily RSI is rising but remains below the 50 mark and is not signaling a bullish divergence yet. As the market remains unclear on direction, Shiba Inu forecast for January remains unclear. The further direction of the trend (bullish or bearish) may be determined depending on whether the SHIB rate manages to make a bullish breakout of the descending resistance line, or whether it breaks through the $0.0000080 area. Source: TradingView The situation with the current distribution of SHIB coins also adds nebulosity. Currently, almost 70% of the entire circulating supply of tokens is controlled by whales.. As you can see from the IntoTheBlock chart, just over 20% are retail traders and less than 10% are investors.. This distribution of coins is potentially fraught with problems, given the ability of whales to bring down asset prices with aggressive sales.. For this reason, and in light of the potential threat of a sell-off, the results of technical analysis become less convincing. Source: IntoTheBlock Expect Short-term Bullish Breakout 4-hour chart suggests more bullish outlook for SHIB. Here, since November 8, the price has been contained inside the “falling wedge” pattern, which is considered a bullish pattern.. Theoretically, this could promise the price an early bullish breakout after consolidation.. This scenario is supported by the emerging bullish divergence signals on RSI (green line). Thus, it makes sense to expect a bullish Shiba Inu breakout from the falling wedge pattern.. In this case, the price may head towards the $0.0000098 resistance area we highlighted earlier.. Further, the behavior of the price in this area can determine its further trend. Source: TradingView Summing up, the most likely short-term scenario for SHIB is a bullish breakout and growth towards $0.0000098. The further trend of the coin in January will depend on how the Shiba Inu behaves when it reaches this area. Previously, the editors of BeInCrypto collected the opinions of experts and their forecasts for the rates of Bitcoin, Ethereum and Ripple for 2023. Disclaimer All information contained on our website is published on the principles of good faith and objectivity, as well as for informational purposes only.. The reader is solely responsible for any actions taken by him on the basis of information received on our website.