SHIB regains lost support
Shiba Inu has been trading inside an ascending parallel channel since June. The rally led to a high of $0.0000120 in December 2023 (red icon). This triggered a significant downward movement and a bearish breakout of the $0.0000092 support area.. Soon after, SHIB rose above it, reversing the previous breakout. Now the price of the popular memcoin is approaching the midline of the channel.
Source: TradingView
Meanwhile, the daily Relative Strength Index (RSI) is giving bullish signals. It is growing and is above the neutral level of 50, which indicates an upward trend.
Shiba Inu Forecast: Should We Expect a Bullish Breakout?
A closer analysis of the daily timeframe shows that on February 9, SHIB broke through the descending resistance line. This served as a catalyst for growth.
The price is currently facing very strong resistance at $0.0000100 formed by the 0.5 Fibonacci retracement level, the channel midline, and the horizontal resistance area. This is a key reversal area that can determine whether the trend going forward is bullish or bearish.
A successful break above this confluence of resistance levels could result in a 30% rise in price to the channel resistance line at $0.0000125.
Source: TradingView
Despite this positive outlook, a break below $0.00000920 would invalidate the current bullish breakout. In this case, SHIB could fall 20% to the rising support line at $0.00000800.
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