• Shiba Inu price breaks above a descending trend line this morning.
  • SHIB price looks set to start an uptrend going into the New Year.
  • Expect a robust bullish signal today that will spark investor inflow throughout the coming days.

Shiba Inu (SHIB) price has popped above a descending trend line dictating price action since the beginning of December. With this bullish signal, more investors are joining the rally, driving the Relative Strength Index (RSI) higher. Expect this to be the start of a Christmas rally that will go into New Year with a first price target at $0.00004490, the 61.8% Fibonacci level.

SHIB price sees investors gearing up for a late uptrend

Shiba Inu price delivered a bullish signal this morning by breaking out of the downtrend that it has been in for over three weeks now.  Bulls used the false break of the S1 support level at $0.00003000 yesterday to trap bears and use momentum to slingshot themselves above the descending trend line, making it a perfect break to the upside, which will see traders jump on the trade throughout the day.

SHIB price should see solid continuous buying activity, which will be reflected in the RSI, which will probably tick up more quickly towards the overbought area. By then, SHIB price action will have reached the 61.8% Fibonacci level at $0.00004490. With the 55-day Simple Moving Average coming in just above, expect this area to trigger some profit-taking as thin liquidity might sketch a fade in price action.

SHIB/USD daily chart

SHIB/USD daily chart

As markets are pretty thin and volatile in the last ten days of trading, expect to see some whipsaw price action from time to time. Do not expect this rally to go in a straight line, and there is still the risk that this breakout turns into a bull trap, which would result in SHIB price dipping below the S1 again to test the 78.6% Fibonacci level at $0.00002782 for support. A break down lower would bring SHIB to the 200-day SMA at $0.00002052, spelling more support in a holding pattern through the New Year.


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