Shiba Inu (SHIB) will continue to walk even if the price drops
The Shiba Inu (SHIB) price fell on November 11 after several resistances declined.
Although declining, SHIB is trying to regain key defensive status. Will it be successful?
Shiba Inu falls after being rejected
A technical analysis of the daily time frame shows that SHIB's price has fallen in line with the declining resistance trend line since the beginning of the year. The trend line has rejected the price twice, most recently on November 11th, creating a series of low highs.
The rejection resulted in the ongoing downward movement in SHIB's price.
SHIB price may be following the rising support trend line from June. Combined with the resistance, this creates a balanced triangle design. However, the support trend line has not been confirmed enough times.
The RSI is a momentum indicator that traders use to determine whether the market is overbought or oversold.
A reading above 50 and an upward trend indicates that the bulls are still in advantage, while a reading below 50 indicates the opposite.
RSI is at 50, a sign of an indeterminate trend.
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What do analysts say?
Cryptocurrency trader and analyst John Morgan believes that SHIB's price is at risk of further declines due to the breakdown of the symmetrical triangle pattern.
However, several other accounts are more adamant about the possibility of an increase in SHIB's burn rate due to overcrowding.
More than 80 million Shiba Inu tokens have been burned as the ecosystem is supposed to lead to artificial intelligence.
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SHIB Price Forecast – Has the Bottom Been Entered?
A closer look at the daily timeframe gives a mixed reading for the altcoin. This is because there are conflicting signals from the price action and the number of waves.
The price action shows that the price of SHIB was rejected by the 0.618 Fib retracement resistance level on November 11, creating a long upper wick (red icon) and falling. The decline took SHIB price below the $0.00000840 level, which can now be used as resistance.
However, the wave number suggests that the price has completed an ABC correction structure.
Technical analysts use Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of the trend.
Since the correction looks downward, it indicates that the Shiba Inu price trend is bearish.
Finally, the RSI is right at 50, indicating an indeterminate trend.
Due to these mixed readings, SHIB price will determine the future trend if it moves above $0.00000840 or declines.
A breakout from around $0.00000840 leads to a 30% increase to the next resistance at $0.0000105. However, a rejection from the area could result in a 13% SHIB price drop, reconfirming the $0.0000070 area.
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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.
