Shiba Inu (SHIB) price shows downward potential
Shiba Inu (SHIB) price has fallen after rejecting the resistance trend line of December 17, 2023.
A Shiba Inu falls short of a horizontal position. Will it recover or will the downward trend continue?
Shiba Inu trades in opposition
Technical analysis of the daily timeframe shows that Shiba Inu's price has been trading in an ascending parallel channel since June 2023. The increase will be $0.00000120 on December 17, 2023.
Then, the resistance trendline of the channel rejected it, and the price of SHIB has moved downward since then.
At the beginning of the year, SHIB fell below the midline of the channel and on January 21, 2024, it declined below the short-term horizontal position. Shiba Inu trades at the bottom of the channel.
The daily Relative Strength Index (RSI) gives a boring reading.
Traders use the RSI as a momentum indicator to assess whether the market is overbought or oversold and whether to stock 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 RSI is falling and below 50, both indicators of a bearish trend.
Read more: How to buy a Shiba Inu (SHIB) and everything you need to know
SHIB Price Forecast: How Long Will the Correction Continue?
Similarly, from the daily time frame, the six-hour chart suggests that the price of SHIB will continue to move lower. This is due to price action and RSI readings.
The price action indicates that SHIB is trading in the lower part of a short-term descending parallel channel. It has recently been rejected in the midline (red circle).
In line with this bearish forecast, the RSI has fallen below 50.
Read more: Shiba Inu burn rate explained: Understanding token burn
If SHIB's price continues to decline, it could drop another 12% and reach the next closest support at $0.0000077. This is a horizontal support area and is aligned with the long and short term channel support trend lines.
Despite this bearish SHIB price forecast, a retracement of the midline of the channel could trigger a 10% rise above the $0.0000095 resistance trend line.
Click here for BeInCrypto's latest crypto market analysis.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
