Shiba Inu is locked in a correction pattern. Will SHIB break free?

SHIB made an unsuccessful attempt to rise and has been declining since then, although it still remains inside a corrective pattern. Finding out whether to wait for a bullish breakout

Shiba Inu fails bullish breakout

The weekly timeframe shows that Shiba Inu has been declining since January along a descending resistance line. The popular meme token has bounced off this trend line numerous times before. Three such rebounds occurred in November (red icons). As a result, long upper wicks appeared on the chart, which are considered signs of selling pressure.

SHIB has been declining since its last bounce on November 27th.

Since June, the SHIB price has also been moving along an ascending support line, which, combined with the aforementioned resistance, forms a symmetrical triangle.

The daily relative strength index (RSI) is around the neutral level of 50 and therefore cannot confirm the direction of the trend.

Read also: Is the decline of Shiba Inu (SHIB) over? Analysts disagree

SHIB Forecast: When to Expect a Breakout

The six-hour timeframe shows that the SHIB price has been declining since November 11 inside a descending parallel channel. Such channels usually contain corrective movements, making the most likely scenario a bullish breakout from the pattern.

On November 22, SHIB rebounded from the 0.618 Fibonacci retracement level, which also coincided with the channel support line. However, the price was unable to break out of this channel.

Cryptocurrency trader ChartMonkeyBTC believesthat the price of memcoin will increase significantly in the short term. He believes that “a 100%+ upside is possible after a clean break of the red trendline resistance.”

Meanwhile, from the current news in the project ecosystem, it can be noted that in the last 24 hours was burned about 36 million SHIB tokens, and in the last seven days – about 320 million.

The further direction of the trend may depend on whether SHIB breaks through the upper boundary of the channel or is thrown away from it. A breakout from the channel could trigger a 35% rise to the next resistance at $0.0000105. On the downside, a pullback would result in a 10% drop to the nearest support at $0.0000072.

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