SHIBA INU (SHIB) could break the short term descending resistance line but the long term outlook remains bearish.
The SHIB has been falling since October 28th when it hit an all-time high of $ 0.000088. So far, it hit a low of $ 0.0000405 in November.
More importantly, the decline caused a collapse below the $ 0.000048 horizontal zone. Previously, SHIB rose above it on November 4th (green symbol). After the break, SHIB confirmed it as a resistance on November 19 (red symbol).
The technical indicators are also falling. The MACD, formed by the short and long-term moving averages (MAs), is falling and is about to move into the negative zone. This means that the short-term MA is moving more slowly than the long-term MA. It usually occurs in downtrends.
The RSI, a momentum indicator, has fallen below 50. This is also taken as a sign of a downtrend, as movements above and below the 50 line can be used to determine the direction of the trend. When the RSI previously crossed over 50 (green circle), it initiated a rally to all-time highs.
The next supports are at $ 0.000037 and $ 0.000023. These are the support levels for the fib retracement of 0.618 and 0.786, respectively.
Daily SHIB / USDT Chart | Source: TradingView
Future SHIB movement
Trader @ewforecast sketched the SHIB chart, called that the token completes the adjustment between 0.000024 – 0.000035. This zone also coincides with the fib support area described above.
However, the six-hour short-term chart offers a slight chance of recovery.
As SHIB broke below the horizontal support at $ 0.000043, it rebounded shortly thereafter (green icon). This just makes the previous breakout a deviation. Such movements are often followed by upward movements in the other direction.
If there is a breakout, the next resistance is at $ 0.00057.
While this possibility is visible on the short-term timeframe, the outlook on the daily timeframe remains pessimistic.
6-hour SHIB / USDT chart | Source: TradingView
You can get the SHIB price. see Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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