SHIB Price Prediction – What’s The Next Move?
The price of the Shiba Inu token is trading inside short-term and long-term ascending parallel channel patterns.
On February 15th, the dog-themed meme token did attempt to break out but was unable to sustain an upward movement. Therefore, it ended up falling later on.
Corrective pattern
The daily time frame’s technical analysis shows that since June of the previous year, the price of the Shiba Inu token has been trading within an ascending parallel channel.
On December 17th, the upward movement saw the price of the SHIB token reach a high of $0.0000120. Afterward, the price of the token began to fall below a descending resistance trend line.
Eventually, it ended up reaching the lower part of the channel. But, in February 2024, the meme token was able to regain its footing once more.
This was evident from the fact that it managed to break out from the descending resistance trend line. But, even though there was a breakout, it was unable to move above the middle of the channel.
Instead, the second-largest meme token in the market ended up facing a rejection. An undetermined reading can be seen from the daily Relative Strength Index (RSI).
Currently, the momentum indicator stands at 50, which means no trend can be determined because it has to be below or above 50 to show if the token is overbought or oversold.
Further analysis
The six-hour time frame’s technical analysis shows that there is likely going to be more downside in store for the Shiba Inu token due to the RSI readings and the price movements.
As per the price movement, the Shiba Inu token is trading in the lower part of the short-term ascending parallel channel.
On February 16th, it faced a rejection from the resistance trend line and it has fallen since then. During this decline, the six-hour RSI also declined below 50.
When the RSI moves below the neutral level of 50, it is considered a bearish trend and the token is considered overbought.
Price prediction
The downward movement in the price of the Shiba Inu token will be confirmed if there is a breakdown from the channel.
There can be a 17% decline in the SHIB token’s price, which would take it to the ascending support trend line of the channel at $0.0000080.
Even though the price prediction for the Shiba Inu token is bearish, if it manages to break out from the ascending parallel channel, then it could mean that it has reached local bottom.
If that happens, the price of the Shiba Inu token would record an increase of 16% and this would push up its price to the next resistance level, which is at $0.0000110.
