Shiba Inu struggles to overcome resistance
In January 2023, the price of Shiba Inu began a downward trend that has persisted since then, with the price remaining below a horizontal resistance area that emerged in April. The decline reached its lowest point in June at $0.0000060.
Despite some subsequent upward movement, Shiba Inu has been unable to break through the resistance area. Instead, it has experienced two bounces, each resulting in long top wicks. These wicks are typically indicative of selling pressure.
The coin experienced a sharp decline this week, but managed to recover over the past two days, showing a long lower wick (green icon).
Source: TradingView
Mixed signals from the weekly RSI momentum indicator. While it is declining, it remains above the neutral level of 50.
Shiba Inu price forecast: what direction is the trend heading?
Similar to the weekly timeframe, the daily chart also presents a neutral forecast due to conflicting signals.
The price movement suggests that Shiba Inu has been trading within an ascending parallel channel since June 2023. Typically, such channels contain corrective movements. Most recently, on December 17th, the token rebounded from the resistance trend line of the channel (red icon) and has been declining since then.
The price reached a low of $0.0000082 on January 3, 2024, but managed to rebound and avoid breaking below the $0.0000096 support level.
Despite this rebound, the daily RSI has dropped below 50, indicating a bearish trend. Consequently, the future trend of Shiba Inu may hinge on whether the coin bounces off the $0.0000096 level or experiences a bearish breakout.
Source: TradingView
A bounce could trigger a 25% increase towards the channel resistance line at $0.0000120, while a bearish breakout might result in a 25% decline towards the trendline support at $0.0000078.
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