Shiba Inu tests diagonal resistance once again
The weekly timeframe reveals that the price of the popular memecoin has been steadily increasing since hitting a low of $0.0000054 in June. Consequently, SHIB managed to break through the 480-day descending resistance line in November and surpassed the horizontal resistance area.
However, despite this breakthrough, the price has struggled to maintain significant growth. Instead, it experienced a sharp decline today, once again testing the descending resistance line (green icon).
Meanwhile, over the past 24 hours, more than 12 million SHIB tokens have been burned, representing a 300+% increase compared to the previous day.
Source: TradingView
Simultaneously with the bullish price breakout, the relative strength index (RSI) climbed above the neutral level of 50, confirming the validity of the upward movement.
SHIB forecast: when will growth resume?
In contrast to the neutral outlook on the weekly timeframe, the daily chart demonstrates a bearish trend.
Price dynamics indicate that SHIB has been trading within an ascending parallel channel since June 2023. Such channels usually contain corrective movements. Furthermore, today the SHIB price experienced a bearish breakout from a symmetrical triangle, signaling a potential end to the uptrend.
SHIB’s price is currently at risk of dropping below minor support at $0.0000095.
The RSI is also bearish, as it recently dipped below the neutral level of 50 and continues to decline. If the downtrend persists, the token could decrease by an additional 20% and reach the channel’s support line at $0.0000075.
Source: TradingView
Despite this bearish outlook, a recovery above the $0.0000095 support area could result in a 35% surge towards the channel’s resistance line at $0.000013.
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