Shiba Inu (SHIB) price has formed a bullish pattern inside a long-term horizontal support area. If confirmed, this could lead to a massive price rally.
SHIB price was trading inside a descending wedge since 9th November. On December 16 and 28 the price bounced off the support line of the wedge (green icon) and started the current upward movement. The bounce in the RSI was coupled with a bullish divergence, adding to its validity. Besides, the RSI has now moved above 50.
On January 10, SHIB price broke from the wedge. So far, it has reached a maximum price of $0.00000968.
If the upward move continues, the nearest resistance area will be at 0.00000106, which is formed by the 0.382 Fibonacci retracement resistance level.
On the other hand, a decrease below the wedge resistance line would mean that the breakout was not valid, and new lows are likely.
Double bottom leads to rally?
Similar to the daily time frame, the weekly also offers a bullish outlook.
There are two main reasons for this: First, the Shiba Inu coin price has formed a double bottom, which is considered a bullish pattern (green icon). A double bottom occurred at the long-term $0.0000083 support area, adding to its validity.
Second, the double bottom in the weekly RSI (green line) was coupled with a bullish divergence. Divergences are rare over such long time frames. So, this could lead to a significant rally.
On the weekly time frame, the main resistance area is at the average price of $0.0000175. This is an increase of 85% when measured from the current price.
As a result, if the price of SHIB coin confirms its double bottom pattern, there is a huge upside potential.
To conclude, the Shiba Inu long term price forecast is considered bullish due to bullish readings from both weekly and daily time frames.
There is a possibility of a big rally, which may continue till 85% in the best case scenario. A weekly close below the $0.0000083 support area would invalidate this bullish Shiba Inu price analysis.
In that case, SHIB price could decline towards the next nearest support at $0.0000060.
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