Despite the recent uptrend in the market, Shiba Coin (SHIB), the meme coin ranking second in market value, did not see the anticipated increase. The downturn in Bitcoin‘s price further impacted SHIB, causing it to lose a key resistance level it had been striving to maintain.
Technical analysis of SHIB’s daily chart reveals a consolidation pattern within a rising parallel channel since mid-last year, with a notable peak on December 17. However, resistance at this peak led to a price rejection, and SHIB failed to capitalize on the speculative interest that buoyed other meme coins with smaller market caps.
Following its peak, SHIB’s price fell below the channel’s median line, and it now appears to be treating a previously significant support level as resistance. The daily chart’s RSI indicator remains below 50, suggesting a bearish outlook.
Insights into Shiba Coin’s Trajectory
Short-term charts, such as the 6-hour chart for SHIB, show a decreasing parallel channel since the December 17 price rejection. While such channels may indicate extended corrections, they also hold the potential for significant breakouts.
Shiba Coin’s attempts to breach the channel’s resistance have been unsuccessful, with selling pressure evident in the long upper wicks of the candlesticks. The lack of development on the Shibarium blockchain also fails to provide price support, leaving SHIB unappealing to investors even during market upticks.
Considering these factors, SHIB’s price may continue to decline towards the channel’s support line and the horizontal support area of $0.0000076. Nonetheless, an unexpected breakout could propel the price towards the next resistance level of $0.0000105. Upcoming statements from Fed Chairman Powell could also influence the macroeconomic climate and potentially uplift SHIB investors.