Shiba Inu remains above resistance levels
The value of Shiba Inu, a popular memecoin, has rebounded after reaching a low of $0.0000054 in June. The coin experienced a rising low in October (green icon) and then accelerated its growth rate.
Last week, SHIB surpassed a long-standing horizontal resistance area, reaching a high of $0.0000119. However, the price was unable to sustain this growth and formed a long upper wick (red icon).
Consequently, the token retraced back to the horizontal area, which has been acting as both support and resistance since May 2022.
Source: TradingView
The weekly momentum indicator RSI is currently above the neutral level of 50 and is increasing, indicating a bullish trend.
SHIB Forecast: Potential Bullish Breakout or Bounce
Although the weekly chart shows promise, the daily timeframe suggests that the price may experience a short-term decline before resuming its upward movement. This observation is based on price dynamics and the RSI index.
Price dynamics reveal that SHIB has been trading within an ascending parallel channel since June. These technical patterns are often associated with corrective movements.
On December 17, the token reached the resistance line of the channel (red icon) and experienced a bearish candlestick reversal.
This retracement was accompanied by bearish divergence in the RSI (green), which frequently foreshadows a reversal in bullish trends.
If the SHIB price continues to drop, it could decline by an additional 12% and reach immediate support at $0.0000095.
Source: TradingView
Despite this bearish short-term outlook, a breakthrough of the upper boundary of the channel will signal the end of the correction and could potentially lead to a 40% surge in SHIB, with the next resistance at $0.0000150.
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