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- Since early this year, the SHIB price has been dipping on a decreasing resistance trend line, and according to analysts, if the trend continues, the crypto could the year at a new low.
- However, since June, the token has also been on an ascending support trend line and if this continues and the RSI breaks past 50, SHIB could be in for a great end to the year.
It’s not been Shiba Inu’s year in 2023 and the token, which was once one of the highest gainers in the entire industry, has been dipping and setting lower highs. As the year draws to a close, analysts are divided on whether Shiba Inu (SHIB) will bark its way to a price breakout or whether it will be restricted to the dog house even as other cryptocurrencies record major gains.
At press time, SHIB is changing hands at $0.000008314 after gaining about 1.6% in the past day. In the past week, it has only recorded a 4.5 percent gain as other tokens like Terra Classic and Stacks notched 65 percent and 30 percent gains respectively. Even DOGE, the leading meme coin, gained twice as much as SHIB. Some tailwinds such as a record burn of 264 million tokens this week have failed to ignite the price.
The answer as to whether the price will dip or surge towards the end of the year may be contained in the technical charts. As one analyst notes, SHIB’s price pattern this year has been caught up in a descending resistance trend line. As the graph below shows, a line connecting the peaks of the token’s price cycles shows that SHIB has struggled, and it has continued to set lower highs with every price surge.
However, in an encouraging pattern, the token has formed a slightly ascending support line since June (the line at the bottom). This support line forms a symmetrical triangle with the descending resistance trend line, and their convergence will determine where the price of the token goes next.
In such a pattern, analysts usually turn to the relative strength index (RSI) to predict where an asset’s price goes next. If it’s above 50, the bulls are in control and the price is likely to ascend, with the opposite being true for bears. However, in complicating the analysis even more, SHIB’s RSI has wavered around this level for days. At press time, it’s at 53.22, showing the bulls have a slight advantage.
What’s Next for SHIB?
For Shiba Inu, the future relies on whether it can shed the moniker of a meme coin that’s only good for speculation. The team behind the project has been working diligently to transcend this image, and the launch of the Shibarium Layer 2 network is the best show of this commitment.
Lead developer Shytoshi Kusama stated earlier this week that his vision is to draw in a billion users to Shiba Inu “with real products and a commitment to privacy and legal compliance.”
Kusama’s vision is gradually becoming a reality, with the number of addresses on the network shooting up from less than 8,500 to 1.3 million in the past two years.
