Digital

Shiba Inu (SHIB) Faces Resistance Can It Overcome Challenges for a Year End Rally?

The Shiba Inu (SHIB) cryptocurrency, known for its volatility, faced a sharp decline after encountering a resistance trend line on December 17. However, the recent price action suggests a potential recovery, raising the question of whether SHIB can muster a final push to end the year on a positive note.

Shiba Inu’s Recent Performance: Since hitting a low of $0.0000054 in June, the SHIB price has demonstrated resilience, creating a higher low in October and accelerating its rate of increase. Despite reaching a high of $0.0000119 last week and moving above a long-term horizontal resistance area, SHIB encountered challenges in sustaining this upward momentum, leading to a correction back to a pivotal horizontal area.

Technical Analysis: Traders often turn to technical indicators to gauge market conditions, and the Relative Strength Index (RSI) serves as a valuable tool in assessing whether an asset is overbought or oversold. The weekly RSI for SHIB is above 50 and increasing, signaling a bullish trend. However, the daily time frame paints a different picture, suggesting a potential initial decrease before a resumption of upward movement.

Bearish Signals and Short-Term Prediction: The daily chart reveals that SHIB has been trading inside an ascending parallel channel since June. The resistance trend line of this channel, encountered on December 17, led to a rejection and the creation of a bearish candlestick. A bearish divergence in the RSI further adds to the short-term bearish sentiment. The analysis indicates a possible 12% decrease, reaching the nearest support at $0.0000095.

Bullish Outlook and Potential Breakout: Despite the short-term bearish signals, the article suggests that a breakout from the channel would mark the completion of the correction. In such a scenario, SHIB could experience a 40% increase, aiming for the next resistance level at $0.0000150.

Conclusion: As Shiba Inu navigates a critical juncture in its price trajectory, traders and investors are closely watching for signals of either a sustained bullish trend or a continuation of the correction. The cryptocurrency’s ability to overcome the recent challenges and potentially rally into the year-end hinges on various technical factors, emphasizing the dynamic nature of the crypto market. Investors should remain vigilant and responsive to market developments as SHIB seeks to determine its year-end fate.

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