Bitcoin is currently fighting to reclaim the $42,000 level, but optimism may be premature as such recoveries often lead to rapid declines. This cautious sentiment is also reflected in the altcoin market. Shiba Inu (SHIB), in particular, has shown better performance compared to Dogecoin, rallying within a rising parallel channel since June 2023 and reaching its peak at $0.00000120 on December 17, 2023.
However, SHIB failed to break the channel’s resistance and turned downward, accelerated by recent BTC sell-offs, and fell below the channel’s support line. The daily chart’s Relative Strength Index (RSI) indicates a continued downtrend, and with BTC yet to convince the markets of a solid recovery, altcoins may not receive much support until the weekly close.
Short-term analysis on the 6-hour chart aligns with the daily chart’s negative outlook, showing SHIB trading below a decreasing parallel channel and suggesting the correction is not yet complete. If SHIB’s price continues to drop, it could potentially fall to $0.0000077, a key area that has been tested multiple times in the past.
Should SHIB regain the channel’s mid-line, it could signal the end of the correction, and a roughly 10% price increase to $0.0000095 might be expected. Despite its presence in the hype category, Shiba Inu cannot detach from the overall market sentiment and may continue its negative trend, especially without any ETF rumors to boost its profile.
The upcoming period will be influenced by developments such as the status of GBTC outflows, other ETF issuers’ reserve growth rates, and macroeconomic events. The next major events include the weekly close and the subsequent Federal Reserve meeting, where Chairman Powell is expected to make statements that could dampen optimism for interest rate cuts.
