Shiba Inu (SHIB) has retreated from its short-term support level but remains above its long-term support, raising questions about a potential trend reversal or further decline. Technical analysis shows that SHIB’s price increase in November 2023 was not sustained, failing to break out from a descending resistance trend line that has been in place for roughly 500 days. Despite trading above this trend line twice, SHIB failed to initiate a significant bounce back.
The Relative Strength Index (RSI), a momentum indicator used by investors to gauge whether a market is overbought or oversold, suggests a downward trend without confirmation yet. SHIB’s price has been trading within a rising parallel channel since June 2023, reaching a peak in December before facing rejection and subsequent decline.
After briefly trading above the $0.0000092 area, SHIB has recently exited this region. The popular meme token is struggling to maintain its position above long-term support, with weekly analysis indicating an inability to continue its November rise and increased downward pressure.
The daily RSI, below 50 and trending downward, could indicate a bearish price movement. If the downward trend persists, experts suggest that SHIB could fall by 12%, potentially reaching the channel’s support trend line at $0.00000800.
Investors are closely monitoring SHIB’s performance for signs of either a rebound or a further drop, as the cryptocurrency‘s future hangs in the balance.
