The Shiba Inu (SHIB) price has increased by 50% since its June lows, reclaiming the $0.0000080 area in the process.
However, the price fell sharply last week, doubting the entire previous increase.
Shiba Inu (SHIB) Price Bounces but Fails to Break Out
The SHIB price began upward after falling to a low of $0.0000054 on June 10. So far, the price has increased by 50%. Moreover, it reclaimed the $0.000080 horizontal area.
This was an especially crucial development since it indicated that the previous breakdown was invalid. So, the area is now expected to provide support again.
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Despite the bounce and increase, the SHIB price still trades below a descending resistance line in place since September 2022. A breakout from the line is required to confirm the bullish trend reversal. In that case, the SHIB price can increase by another 85% and reach the $0.0000150 resistance area.
The weekly RSI is undetermined. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator moves above and below 50 (green circle), indicating an undetermined trend.
Shibarium, the Shiba Inu layer-2 blockchain, launched on August 16. However, the launch was plagued by numerous issues, such as $1.7 million worth of ETH being stuck on the Shibarium bridge. Despite this setback, the Shibarium team announced a $2 million insurance coverage fund to reassure the community.
SHIB Price Prediction: Will Support Area Hold?
The daily timeframe readings also present an undetermined trend.
On the bullish side, the SHIB price broke out from a descending resistance line on July 12. This led to an upward movement that took the SHIB price above the 0.5 Fib retracement resistance level at $0.0000103. However, the price faced rejection (indicated by the red icon) and has subsequently fallen.
The SHIB price now trades close to its pre-breakout levels.
Similarly to the weekly timeframe, the daily RSI gives a mixed reading. The indicator moves freely above and below 50, indicating an undetermined trend.
To conclude, the future SHIB price prediction depends on whether the price closes below the $0.0000080 area or bounces inside it. In case of a bounce, the price can increase by 85%. However, a breakdown can lead to at least a 25% decrease to the closest support of $0.0000060.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
