Down channel:
Since June 2021 the price action of Shiba Inu is moving in a down channel. During the recent drop, the priceline is moving down to test the support of this down channel once again. Previously the priceline has tested the support several times.
Support and resistance:
On the daily time frame there can be two major support and resistance level seen. The support is at: $0.00000550 and the resistance is at:$ 0.00000930. Right now the price action is testing the support and if candlesticks will be bounced from this horizontal support then it is possible that it will not test the support of the channel.
Oscillators:
If we take a look at the different oscillators on the daily time frame, then it can be clearly noticed that the relative strength index ( RSI ) has entered the oversold zone and the stochastic is already oversold. Now you take a look at the moving average convergence divergence ( MACD ) then it is strong bearish. Once the MACD will be turned bullish then the oscillators can start moving towards the upside and the price action can start a big rally from here and can make another attempt to break out the resistance of the channel.
Harmonic bullish BAT:
The price action has also formed a bullish reversal harmonic BAT move on the daily time frame:
Conclusion:
The price action has reached support and at the same time, all oscillators are entered the oversold zone and the price action has also formed a bullish harmonic reversal move. Therefore, from here we can expect that the priceline of Shib token will start a big move to break out the resistance of the channel.
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