Popular meme coin Shiba Inu (SHIB) has reached a crossroads, according to crypto analyst Valdrin Tahiri. The analyst says the weekly charts show a decidedly bearish trend. Anck notes that the daily charts have a more neutral outlook.
Shiba Inu price continues to fall towards support
As you follow from Kriptokoin.com, it cannot escape the downward pressure. Technical analysis on the weekly time frame provides a bearish SHIB price outlook. Price action shows that the meme coin has been declining since being rejected by a resistance line (red icon) in August. The decline caused a breakout from the $0.0000080 horizontal support area. The area will now likely provide resistance.
Besides rejection, the weekly RSI provides a bearish outlook for Shiba Inu. Traders determine whether a market is overbought or oversold by using the RSI as a momentum indicator. Thus, they decide whether it is advantageous to accumulate or sell an asset. If the RSI value is above 50 and the trend is upward, the bulls have an advantage. However, if the value is below 50, the opposite is true. The indicator has been rejected by the 50 line (red circle) and is falling. Therefore, both indicate a bearish trend.
SHIB Daily Chart. Source: TradingViewIf Shiba Inu continues to decline, the next closest support area would be $0.0000060. This means an 18% drop from the current price. On the other hand, a sudden increase in momentum and a breakout from the descending resistance line would likely pave the way for a 100% upside to $0.0000150. However, this is unlikely for this Shiba Inu at this time.
SHIB price prediction: What’s next?
Analysis on the six-hour time frame shows conflicting data from both price action and RSI. SHIB price broke down from an ascending support line on August 17. Thus, it confirmed that the previous upward move has ended. However, since then the price action has been contained within a descending parallel channel. These channels often contain corrective movements. This means that an eventual breakout is expected.
In addition, the Shiba Inu price bounced at the support line of the channel on September 11 (green icon). This bounce coincided with the minor horizontal support area at $0.0000072. The six-hour RSI is also uncertain. While the indicator is increasing, it is still below 50, making the future trend uncertain. If the price continues to decline, it will reach the $0.0000060 area on October 12. Because then the area will coincide with the support line of the channel.
SHIB Six-Hourly Chart. Source: TradingViewHowever, it is possible that the SHIB price forecast will turn bullish if a breakout from the channel occurs. In this case, a 30% rally to the long-term resistance line at $0.0000095 is likely.
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