How long will the value of the Shiba Inu (SHIB) continue to fall?
The price of Shiba Inu (SHIB) has fallen since December 17, 2023, after it rejected the diagonal resistance trend line.
SHIB moves below a horizontal support area and in a short-term bearish pattern.
Shiba Inu strengthens under resistance.
Technical analysis of the daily time frame shows that the SHIB has broken down after rejecting the ascending parallel channel resistance trendline on December 17, 2023 (red icon).
After initially breaking above the $0.0000093 support area, SHIB broke down on January 22. SHIB confirmed it as resistance (red circle) on January 29 and has since fallen.
The daily Relative Strength Index (RSI) is bearish. When assessing market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, the bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator has made many failed attempts above 50 (red circle) and below the level.
Read more: How to buy a Shiba Inu (SHIB) and everything you need to know
SHIB Price Forecast: What is the direction of the trend?
The outlook from the shorter six-hour time frame is similarly weak. As the chart shows, SHIB is seen as a bearish pattern within a descending triangle. The end of the pattern is approaching, so a significant movement is expected soon.
Read more: Shiba Inu burn rate explained: Understanding token burn
The six-hour RSI has been rejected by the 50 trend line (red icon), thus supporting the gap.
If SHIB breaks out of the triangle, it could fall 16% to the support line of the channel at $0.0000076.
Despite this bearish SHIB price forecast, a breakout from the resistance trendline would trigger a 23% rise to the next resistance at $0.0000110.
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