The Shiba Inu (SHIB) cryptocurrency has been on a downtrend since August, with its price nearing the lowest point of the year.
Key points:
- SHIB has been in a downtrend since a long-term descending resistance line rejected the price in August, a trendline that has been in place for 434 days.
- The cryptocurrency fell below a crucial horizontal support level at $0.0000080, which had held for over a year.
- The Relative Strength Index (RSI) has shown a bearish reading, suggesting a bearish market sentiment.
On the daily timeframe, SHIB has been trading inside a descending parallel channel since August 14, which typically contains corrective movements. A breakout from this channel will likely determine the cryptocurrency’s future outlook.
The RSI, while increasing, is currently below 50, indicating a bearish sentiment.
Potential scenarios for SHIB:
- Breakout: If SHIB breaks out of the descending channel’s resistance line, it could see a 30% increase to $0.0000095.
- Rejection: If the cryptocurrency is rejected at the channel’s resistance line, it might experience a 13% decline to the support line at $0.0000063.
Traders and investors will closely monitor SHIB’s price action within this channel to assess its future trajectory in the crypto market.
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