Shiba Inu (SHIB), a popular meme cryptocurrency, has experienced a notable decline since the start of 2024, leading to concerns among investors and market analysts. This downward trend has brought SHIB back to a critical horizontal support area, raising questions about its potential for recovery or further decline.
According to technical analysis, SHIB has been trading within a pattern established since June 2023. The weekly time frame shows that SHIB's price has been under pressure from a descending resistance trend line since July 2022, reaching a low of $0.0000054 in June 2023. However, in December, it managed to break out from this trend line, hitting a high of $0.0000120, before experiencing a recent fall that validated the trend line as a new support level.
The daily RSI (Relative Strength Index) readings indicate a mixed sentiment, with the index falling but remaining above 50, suggesting that bears might not have full control yet. The market's reaction in the coming days will be crucial in determining SHIB's direction. A close below the $0.0000093 support level could trigger a further 20% drop to $0.0000080, while a strong bounce at this support area might lead to a 33% increase to the resistance trend line at $0.0000120.
This situation reflects the volatility and speculative nature of the cryptocurrency market, particularly for meme coins like Shiba Inu. Investors and traders are advised to keep a close eye on these developments, as the next few trading sessions could be pivotal for SHIB's short-term market positioning.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
