The Shiba Inu (SHIB) price is has fallen since a resistance trend line rejected it on December 17, 2023.
Shiba Inu also fell below a short-term horizontal area. Will it reclaim it, or will the downward movement continue?
Shiba Inu Trades Under Resistance
The technical analysis of the daily time frame shows that the Shiba Inu price has traded inside an ascending parallel channel since June 2023. The increase led to a high of $0.00000120 on December 17, 2023.
Then, the channel’s resistance trend line rejected it, and the SHIB price has moved downward since.
At the start of the year, SHIB fell below the channel’s midline and then decreased below a short-term horizontal area on January 21, 2024. Shiba Inu trades in the channel’s lower portion.
SHIB/USDT Daily Chart. Source: TradingView
The daily Relative Strength Index (RSI) gives a bearish reading.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The RSI is falling and below 50, both signs of a bearish trend.
SHIB Price Prediction: How Long Will Correction Continue?
Similarly to the daily time frame, the six-hour chart suggests the SHIB price will continue moving downward. This is because of the price action and RSI readings.
The price action shows that SHIB trades in the lower portion of a short-term descending parallel channel. It was recently rejected (red circle) by its midline.
The RSI is falling and below 50, in line with this bearish forecast.
If the SHIB price continues falling, it can decrease by another 12% and reach the next closest support at $0.0000077. This is a horizontal support area and coincides with the support trend lines of the long- and short-term channel.
SHIB/USDT Six-Hour Chart. Source: TradingView
Despite this bearish SHIB price prediction, reclaiming the channel’s midline can trigger a 10% increase to its resistance trend line at $0.0000095.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Read the full article here