The Shiba Inu (SHIB) exchange rate maintains a long-term pattern, but the shorter-term price structure is threatened by a bearish breakout.
The popular meme coin SHIB, created by the Shiba Inu project, is an ERC-20 format token and one of the main rivals of Dogecoin.
As the results of the technical analysis of the daily chart show, SHIB is trying to bounce from the support line of the short-term pattern.
It remains to be seen whether it will succeed or if it will continue to move south.
Shiba Inu advances toward support
In the daily chart, SHIB has been trading inside a symmetrical triangle since June 2022.
This pattern is considered neutral, so the price is equally likely to make a bullish or bearish breakout.
The coin is now trading in the middle part of the triangle and has been in a downtrend since it rebounded from the resistance line on February 4 (highlighted in red).
The daily RSI Relative Strength Index, meanwhile, is also giving bearish signals, supporting further declines.
This index is a momentum indicator, indicating the overbought/oversold market, depending on whether it is above or below the 50 mark.
In the case of SHIB, the RSI fell below 50 (red circle) last week and is now declining, indicating a bearish trend.
A further drawdown will put the triangle support line at $0.00000850 into play.
Has SHIB completed its correction
The shorter 6-hour chart gives contradictory signals and fails to shed light on memcoin’s prospects.
On the one hand SHIB is trading inside a descending parallel channel.. On the other hand, the price broke the ascending support line (dotted line).
This may indicate that the previous bullish move has already ended.
So the long-term outlook for SHIB is bearish, but the short-term picture is less certain.
The further trend direction of the coin will depend on whether SHIB manages to rebound from the support line of the short-term pattern or the price will make its bearish break..
In the meantime, a bearish scenario could cause a drop to $0.00000850.