Shiba Inu (SHIB) has been trapped in a prolonged downtrend, forming a descending wedge pattern that typically signals a potential reversal. As key technical indicators align, traders are closely watching for a breakout that could reignite bullish momentum.
SHIB Price Analysis
The 4-hour chart shows SHIB declining within a well-defined descending wedge structure since its peak at $0.00003342 on Dec. 8. This pattern, characterized by lower highs and lower lows, suggests a corrective ABCDE wave sequence, with Wave Y potentially concluding at the recent low around $0.000011.
A key technical level to watch is the 0.786 Fibonacci retracement at $0.00001504, which has acted as strong support. The Relative Strength Index (RSI) is deeply oversold, historically aligning with previous reversal points. Furthermore, the price’s interaction with the 0.786 Fibonacci level supports the possibility of an imminent bounce.
The larger Elliott Wave count suggests that SHIB has been undergoing a complex WXY correction since reaching its local high of $0.000045 on Mar. 5. Wave W saw a significant decline, followed by a corrective X wave that failed to breach descending resistance. The subsequent Y wave has been gradually grinding lower, forming a series of corrective subwaves.
For a bullish confirmation, SHIB needs to break out above the descending wedge resistance with strong volume.
SHIB Price Prediction
The 1-hour chart indicates that SHIB may have completed Wave E of the larger correction, forming a local double-bottom pattern around $0.00001172. If this structure holds, the price could target key resistance levels:
- Immediate Resistance: $0.00001504 (0.786 Fibonacci retracement)
- Key Resistance: $0.00002147 (0.618 Fibonacci retracement)
- Critical Resistance: $0.00002599 (0.5 Fibonacci retracement)
- Short-Term Target: Above $0.00003609 if bullish momentum sustains
A sustained breakout could push SHIB toward $0.00003609, completing a full corrective retracement. However, failure to break above the wedge resistance would signal continued downside risk. A drop below $0.0000100 would invalidate the bullish reversal scenario, potentially leading to a retest of lower support levels.
Also Read: Shiba Inu (SHIB) Breaks Key Support: Is a Drop to Q1 2024 Lows Inevitable?
With SHIB at a critical juncture, traders should watch these levels closely as the next major move unfolds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
