Shiba Inu’s Rollercoaster Ride: What’s Behind the Recent Price Drop?

Alright, so Shiba Inu (SHIB) has been on a bit of a rollercoaster lately. The price has been sliding since December 17, 2023, and things took a faster downturn on January 3 this year. But, hey, hold on a second – it’s not all doom and gloom.

Shaky Ground but Holding On

Despite the dip, SHIB managed to dodge a breakdown from a crucial support zone. The big question now is: Can it bounce back?

Struggling with Resistance

Taking a peek at the weekly chart, it’s clear that SHIB has been on a downward slide since January 2023, hanging out below a pesky horizontal resistance area since April. There was a low point in June at $0.0000060, but then SHIB tried to make a comeback. Unfortunately, it got rejected twice at that resistance spot, sporting those long upper wicks that shout “selling pressure.”

This week, there was another sharp drop, but the good news is, it also managed a rebound over the last couple of days, leaving behind a nice long lower wick (yeah, that’s the green icon).

RSI Drama and Mixed Signals

Now, for those who like to keep an eye on the RSI (that’s the momentum thingy), it’s giving us a bit of a mixed bag. While it’s falling, it’s still above 50, which usually means the bulls are holding the fort. Tricky, right?

Is SHIB Going Up or Down?

Zooming in on the daily chart, things are still a bit up in the air. The price action has been playing inside an ascending parallel channel since June 2023, which often happens during corrective movements. But, plot twist – SHIB got rejected at the channel’s resistance trend line on December 17, and it’s been on a downward slide since.

Despite hitting $0.0000082 on January 3, there was a bounce that saved the day, preventing a breakdown from the $0.0000096 support area. Oh, and let’s not forget, over 5 million tokens went up in smoke in the past 24 hours.

The Big Question: Bull or Bear?

Now, whether SHIB bounces back at $0.0000096 or takes a nosedive will decide its fate. The daily RSI, though, dipped below 50, waving the bearish flag. So, keep an eye out – a bounce could mean a 25% jump to $0.0000120, while a breakdown might lead to a 25% drop to $0.0000078. Let the Shiba Inu saga continue!

For BeInCrypto’s latest crypto market analysis, click here.