The Shiba Inu (SHIB) price has decreased for most of the year but is showing bullish signs at a short-term patterns support line.
As a result, an upward movement may follow. However, how this fits in with the bearish long-term trend is still uncertain.
Shiba Inu Is on a Gradual Descent Toward Support
The daily time frame analysis shows that SHIB price has traded within a symmetrical triangle since June 2022. This pattern is considered neutral, meaning that both an upward breakout and a downward breakdown are equally likely to occur.
Presently, the price is positioned in the middle of the triangle, with a downward trajectory since experiencing a resistance line rejection on February 4th.
The daily Relative Strength Index (RSI) reading also supports the continuation of the drop. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine 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 fell below 50 last week (red circle) and is now decreasing, indicating a bearish trend.
SHIB Price Prediction: Is a Bounce Forthcoming?
The technical analysis conducted on the six-hour time frame yields mixed signals and an uncertain forecast for the SHIB price. This is primarily due to the price action, which suggests that an initial bounce will occur. This is not in alignment with the long-term readings.
The SHIB price is trading inside a descending parallel channel. This is a type of corrective pattern in which the price bounces between the resistance and support lines of the pattern before eventually breaking out.
Currently, the price is trading very close to the channel’s support line.
While the fact that SHIB trades in the lower portion of the channel is bearish, the RSI is bullish. The indicator has generated bullish divergence (green line).
This is a type of occurrence where a decrease in momentum does not support the decrease in price. Therefore, it leads to upward movements most of the time.
Based on the above indicators, if the decrease continues, the triangle’s support line will be at $0.00000850.
Although the long-term forecast for SHIB price is pessimistic, the short-term SHIB price prediction is leaning bullish.
The future trend is likely to be determined by whether the SHIB price rebounds at the support line of the current short-term pattern or experiences a breakdown.
If the price rebounds at the pattern’s support line, it could potentially reach a maximum price of $0.0000170. However, if it breaks down from the support line, it is expected to drop to $0.00000850.
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Source: https://beincrypto.com/shib-token-price-holding-steady-despite-dip/