Shiba Inu faces resistance at a key level
The daily timeframe reveals that the value of the well-known memecoin has been fluctuating within an upward parallel channel since June 2023. Throughout this period, SHIB reached a peak of $0.0000120 (December 17).
However, the token has since experienced a decline, rebounding off the resistance line of the channel (red icon).
Recently, SHIB dropped below the horizontal resistance zone and confirmed it as a barrier. This also confirmed the existence of a shorter-term descending resistance line, which can be traced back to the aforementioned peak.
Source: TradingView
The daily Relative Strength Index (RSI) is exhibiting a bearish signal. The indicator is currently below the neutral level of 50 and is declining, indicating a downward trend.
SHIB Forecast: Is a Bearish Breakout on the Horizon?
The shorter six-hour timeframe supports the analyses made on the daily chart. It illustrates that Shiba Inu has been trading within a descending triangle for the past 27 days. This bearish pattern implies that a bearish breakout is the most probable scenario. Currently, SHIB is in the process of breaking below the support area of the triangle at $0.0000090.
The 6-hour RSI strengthens the case for a bearish breakout as the indicator resides below the neutral 50 mark and continues to decline. If this downward trend continues, the token could potentially reach the support line of the ascending channel at $0.0000078, representing a 14% decrease from the current price.
Source: TradingView
Conversely, if SHIB manages to rise above the resistance trendline of the triangle, the bullish breakout would be invalidated. In such a scenario, SHIB could surge by 25% towards the next resistance level at $0.0000110.
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