Shiba Inu’s (SHIB) price has been making some significant moves recently, as it has cleared a crucial resistance area, indicating the start of a potentially more significant upward trend. The daily timeframe for SHIB shows some bullish indicators that suggest that this crypto is set to soar in the near future.
Breaking Out of Long-term Resistance
One of the key reasons for SHIB’s bullish outlook is that its coin price has finally broken out from a long-term descending resistance line that had been in place for 53 days. Typically, breakouts from these structures mean that the previous correction has ended, and a new upward movement is in store. For SHIB, this likely means that the correction that began in February has now come to a close.
Bullish Relative Strength Index (RSI)
The daily Relative Strength Index (RSI) also moved above 50, which is considered a sign of a bullish trend. This momentum indicator helps traders understand if a crypto is overvalued or undervalued by measuring how quickly its price is changing. By looking at how fast and how big the price has moved recently, it helps traders determine if it might be time to buy or sell the crypto.
Fibonacci Retracement Levels
If an upward trend does occur, the next resistance level would be at $0.0000135, the 0.618 Fib retracement resistance level. Fibonacci retracement levels operate as a set of horizontal lines derived from the Fibonacci sequence, indicating areas where support and resistance may be encountered.
Short-term Price Prediction
The technical analysis from the short-term six-hour timeframe supports the bullish outlook from the daily one. An ascending triangle has formed, which is considered a bullish pattern that leads to breakouts the majority of the time. On April 12, the meme coin bounced at the triangle’s support line and is now in the process of breaking out. A breakout that travels the entire pattern’s height would take the price to $0.0000135. However, if the price closes below the triangle’s support line, this bullish SHIB price prediction would be invalidated, and the price could fall to the previous support at $0.0000100.
Conclusion
Overall, the daily timeframe suggests that SHIB’s trend is bullish, and an upward movement is expected. The technical analysis from the short-term six-hour timeframe supports this bullish outlook, with an ascending triangle forming, which is a bullish pattern that often leads to breakouts. If this occurs, the next resistance level would be at $0.0000135, while a close below the triangle’s support line would invalidate this bullish SHIB price prediction. For traders looking to capitalize on these potential price movements, keeping a close eye on SHIB’s daily and six-hour timeframes is essential.
