Shiba Inu (SHIB) price is attempting to break above a confluence of resistance levels near $0.00001. Early readings suggest it will be unsuccessful.
The price of the Shiba Inu token has been dropping below a descending resistance line since August 14. The line rejected the coin meme several times between October 28 and November 4 (red circle). Subsequently, a sharp decline followed, causing a break of the long-term horizontal zone of $0.0000097 and a minimum price of $0.0000081. The area will now provide resistance.
Despite the collapse, the move since has not been characterized by high volatility. At the time of writing, Shiba Inu's price is trading just below the $0.0000097 zone, having been there for the past 24 hours.
Before the bounce, the daily RSI generated a bullish divergence (green line). However, the indicator has not yet exceeded 50.
As a result of these readings, the Shiba Inu price prediction cannot be considered bullish. Only a break of the $0.0000097 resistance zone would make it that way. The area also coincides with the descending resistance line, increasing its legitimacy.
Shiba Inu Price Prediction: Rejection or Escape?
The short-term four-hour chart does nothing to deter the bearish SHIB price prediction. As the Shiba Inu token broke out of a descending resistance line, the whole move looks like a corrective ABC pattern. The main reason for this is the decline that led to the November 22 low, which appears to be a three-wave pattern (highlighted). Additionally, the continued rise has lagged behind the rest of the cryptocurrency market.
Giving waves A: C a ratio of 1:1 would lead to a high near $0.00001. Therefore, it will not cause a breakout above the previously described resistance confluence.
Thus, the Shiba Inu price prediction remains bearish unless the SHIB price manages to break decisively above $0.000097. Therefore, the most likely scenario is a gradual decline toward the $0.000076 support zone.
