SHIBA INU (SHIB) is showing a bullish reversal signal inside a long term horizontal support area. However, the possible reversal is yet to be confirmed.
The SHIB has been declining since reaching an all-time high of $0.000088 on October 28, 2021. The decline has led to a local low of $0.0000074 on June 13th. This is a decrease of 90.50% from the all-time high.
The price is close to the $0.000007 support area, which is in force since 2021.
Despite being near this support level, the weekly RSI is bearish as it is falling below 50, indicating that the trend is still bearish.
The price is also following a descending resistance line since its all-time high, but its slope is yet to be confirmed.
potential surge
The daily time frame shows that a bounce may be coming soon. This is mainly because of the very bullish divergence (green line) developing in the daily RSI.
For this divergence to be confirmed, the indicator needs to move above 37 (the white line), the top between the two divergences.
For this to happen, the price has to break out of the short-term descending resistance line (dashed). In turn, this could lead to a move towards the next nearest resistance line at $0.00017.
short term SHIB movement
Finally, the two-hour chart shows that SHIB is moving inside an ascending parallel channel since May 12. Such channels usually have corrective movements, which means that an eventual breakdown appears likely.
Furthermore, the price was rejected by the resistance line of this channel on 16 June (red sign) and has been declining since. It is currently trading below the midline of the channel. This is a bearish signal that indicates a breakout is likely.
The 1.27 external Fibonacci retracement is found at $0.000007, which coincides with the long-term support area mentioned earlier. If it doesn’t, the next nearest support area will be $0.00000645 formed by the 1.61 external Fibonacci retracement level.
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