The weekly timeframe reflects a steady increase in the price of the popular Shiba Inu cryptocurrency, starting in June, when it pushed off from a low of $0.0000054. The upward movement accelerated after the price set higher lows in October.
After three unsuccessful attempts to overcome resistance, SHIB was finally able to break through the 475-day downward resistance line in December. After that, there was a closure above an important level of horizontal resistance.
The relative strength index of the RSI is above the 50 level and continues to rise, which is a sign of a bullish trend.
It is also worth noting that over 7,500,000 SHIB tokens have been burned in the last 24 hours alone. In addition, recently the total value of assets locked in the Shibarium ecosystem (TVL) exceeded the psychological mark of $1 million, although now it has dropped below this mark again.
Forecast for SHIB: Is a Price Correction Possible
Unlike the weekly chart, the daily chart hints at a possible price correction. This can be revealed by the price dynamics, since on December 17, the SHIB was pushed back from the ascending resistance line parallel to the channel. Then, on December 23, the price set a lower maximum.
Moreover, during this rebound, a bearish divergence of the relative strength index of the RSI formed on the daily chart. This happens when a price increase is accompanied by a decrease in momentum.
All these factors indicate a possible continuation of the price correction. If the decline continues, the nearest support area will be at $0.0000095, which is about 12% below the current price.
However, a bullish breakout from the ascending channel would cancel out the correction scenario. In this case, the price could rise by 40%, reaching the next resistance level at $0.0000150.
