Shiba Inu (SHIB) is close to breaking out of the short-term pattern

While the Shiba Inu (SHIB) has been trending upwards since June 18, it is trading inside a short-term corrective pattern, indicating that a breakdown is likely.

The SHIB has been declining since reaching an all-time high of $0.000088 in October. The downside movement became more gradual and started following a descending resistance line in December.

The line has caused many rejections, most recently doing so in April. Due to this, it came down to a low of $0.00000739 in June.

However, the price has been rising since rallying at the $0.0000078 horizontal support area (green icon), a level it hadn’t reached in almost a year.

SHIB is currently trading at $0.00001, a decline of 88% from all-time highs.

If the upward movement continues, the above resistance line will be found at $0.000015. A breakout from this line is required for a longer term trend to be considered bullish.

short term SHIB movement

shiba inu enthusiast @senna_shiba Said that a short-term breakout could end soon.

The six-hour chart shows that SHIB started a very sharp upward move on June 18. However, since June 22, it is trading inside an ascending parallel channel. Such channels usually have corrective movements, which means they are likely to eventually break out.

Additionally, there has been considerable overlap in movement inside the channel, another sign that indicates the movement is corrective. Currently, SHIB is trading at the support line of this channel.

If there is a breakdown, the nearest support area will be $0.0000985. Previously, the price deviated below this area (red circle), before retracing it.

As a result, a breakdown below this level will be a decisive bearish signal indicating that the trend is still bearish and new lows will follow.

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