The Shiba Inu (SHIB) has found its footing after breaking out of a neutral pattern. However, it is yet to reclaim an important horizontal resistance area.
SHIB broke through a symmetrical triangle on June 6. While the Symmetrical Triangle is considered a neutral pattern, it is coming after a downward movement.
So, it makes a breakdown more likely. There was also a breakdown below the $0.0000105 support area.
After breaking out, the price continued to decline until it reached a low of $0.0000071 on June 18. Since then the price has been moving upwards.
Although it reclaimed the $0.0000105 area initially, it failed to maintain the upward momentum and later fell below it. At present, this area is once again acting as a resistance.
FUTURE SHIB MOVEMENT
A closer look at the movement shows that a significant bullish divergence in the RSI preceded the full rise. Now, the divergence trend line has been broken. The RSI is currently at the 50 line, which is considered a neutral reading.
Besides, the price is trading above the 0.5 Fibonacci retracement support level but below the $0.0000105 resistance area. So, reading by the six hour time frame is completely neutral.
Shib Enthusiast @senna_shiba Tweeted a SHIB chart indicating that the price has increased to $0.00001.
Since the tweet, the price has been rejected and has dropped slightly. The rejection acted to validate the 0.5 Fibonacci Retracement resistance level and the resistance line of an ascending parallel channel (red icon).
Since such channels usually have corrective movements, this would be expected to break out eventually. This possibility is further strengthened by the fact that the price is trading inside resistance.
If there is a breakdown, the price could decline to the 0.618 Fibonacci retracement support level of $0.000009 (White).