Shiba Inu (SHIB) has increased by 30% since its May 12 bottom and created its first higher low in the process.
SHIB has been falling since reaching an all-time high price of $0.000088 on Oct 28. Initially, the price bounced at the $0.00002 horizontal area. This is an important level since it had previously acted as resistance during the May 2021 old all-time high.
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While SHIB bounced at first, it eventually broke down in May. The $0.0002 area is now expected to provide resistance once more. Besides the breakdown, the RSI has also fallen below 50 (red icon), which is considered a sign of a bearish trend.
If the downward movement continues, the next closest support area would be at $0.0000065. The area has not been reached since last Sept.
SHIB double bottom
The daily chart shows that in the period between May 12 and 29, the price created a double bottom. This is considered a bullish pattern, meaning that it often leads to bullish trend reversals.
Additionally, the pattern was combined with bullish divergence in the RSI (green line). This in turn makes the pattern more meaningful.
If the upward movement continues, the first significant resistance area would be at $0.000017, the 0.382 Fib retracement resistance level.
SHIB enthusiast and holder @army_shiba tweeted a chart which shows an ascending triangle. He suggested that the price could soon break out.
While it took longer than anticipated, SHIB did eventually break out on May 29 after creating a descending wedge.
After the breakout, the price reached a high of $0.0000123 but was rejected by the $0.0000125 resistance area.
If the price manages to reclaim this resistance area, it could continue increasing until $0.000014. This would take it to a horizontal resistance area that also coincides with the top of the wedge.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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