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Shiba Inu Price Analysis in 2023 January

Shiba Inu price analysis

Shiba Inu getting Support

The price of SHIB has been declining since it fell below a descending resistance line on August 14th. This line caused several rejections in late October and early November before the price dropped sharply (indicated by the red circle). The drop caused the price to break down below the $0.0000098 support area, which was then validated as resistance on December 5th (indicated by the red icon).

Since then, the price of SHIB has continued to decrease and validated the $0.0000080 area as support on December 19th. However, there are currently no bullish reversal signs present. The daily relative strength index (RSI) is rising, but it is still below 50 and has not shown any bullish divergence.

Given the lack of clear indications in either direction, it is difficult to make a prediction about the price of Shiba Inu in January. Whether the price breaks out from the descending resistance line or breaks down from the $0.0000080 support area could determine if the future trend is bullish or bearish.

Additionally, the high percentage of SHIB tokens controlled by whales (nearly 70% of the circulating supply) adds to the uncertainty. Retail investors hold just over 20% of the supply, while investors hold less than 10%. The large concentration of tokens in the hands of whales means they have the potential to significantly influence the price by selling large amounts of SHIB. This could potentially make technical analysis readings less reliable, as the possibility of such a sell-off could distort the market.

January price analysis

According to technical analysis of the four-hour time frame, the outlook for the price of SHIB is potentially bullish. The price action since November 8th has been contained within a descending wedge, which is typically seen as a bullish pattern. While the price has been consolidating over the past 24 hours, a breakout from the wedge could occur soon due to the development of a bullish divergence in the relative strength index (RSI, indicated by the green line).

Therefore, the Shiba Inu price analysis suggests that a breakout from the descending wedge is likely, which could bring the price of Shiba Inu up to the $0.0000098 resistance area previously mentioned. The price action once it reaches this level will determine the future trend.

Overall, the most probable short-term movement for the SHIB price is a breakout and an increase toward $0.0000098. After this point, the Shiba Inu price prediction for January will depend on how the price reacts at this resistance level.

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