Key Takeaways
Shiba Inu (SHIB) recently surged toward a significant resistance zone, generating strong bullish interest before encountering rejection at a long-standing descending trendline.
The price action across both higher and lower time frames suggests a critical juncture: either SHIB resumes its uptrend with renewed momentum or dips into a deeper corrective structure.
As it broke out from a significant descending structure, the bullish signs look promising, but its last decrease to the support zone threatens the bullish outlook.
SHIB Price Analysis
SHIB’s 4-hour chart reveals an extended corrective structure since the March 2024 high of $0.000045 might have ended.
The price rallied sharply from a local low near $0.000010 to a high around $0.000015, breaking the descending channel resistance since December as anticipated in our previous analysis.
This move coincided with the Relative Strength Index (RSI) pushing into the oversold zone below 30 on March 11, which historically marked exhaustion points during prior downtrends.
The breakout momentum was stopped at the 0.786 Fibonacci level, which was a resistance point in the past.
This caused a 24.50% decline to the key demand zone, but the price still sits at a higher low of $0.000012 than on March 11.
If SHIB ended its long-lasting WXY correction, the breakout and a consequent 44% rise could indicate the start of a new bull phase.
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For this to be validated, we need to see the price maintain a higher low and make another upturn from its current levels, ultimately making a higher high above $0.000015.
On the other hand, if the price continues to decline, we can anticipate a retest of the support zone’s lower boundary, meaning that the WXY still has more downside room.
SHIB Price Prediction
On the hourly chart, SHIB appears to be carving out a corrective flag or triangle pattern following its rejection from the $0.000015 high.
The initial leg down found temporary support near $0.000012 (0.5 Fib extension), while intraday recovery attempts have been met with lower highs, suggesting the market is coiling before the next decisive move.
Looking closely at the bullish structure that led to a breakout, we can see that it is likely an upward ABC, a corrective structure.
The subsequent decline was an impulsive five-wave advancement that cannot end on its own and is more likely the part of either another ABC correction to the downside or a new, even the first sub-wave of a larger impulsive move.
Since the price ended its five-wave downtrend at a low of $0.000012, it formed a descending triangle, likely part of its consolidation attempt.
Short-term upside is expected, which could be a corrective B wave to a target of $0.0000138. Should the price go above this level, a bullish projection might come into play.
There is still a chance that the rise from March 11 was the first five-wave impulse, and the following decline was its first correction.
This is why maintaining a higher low above $0.000010, followed by a higher high above $0.000015, will validate this assumption.
However, judging by the wave structure, SHIB is likely to continue moving to the downside after the expected B wave bounce.
If the bearish scenario is validated, the first target would be the 0.786 Fib extension at $0.000010, but we would anticipate lower values than on March 11.
Key Levels to Watch
- Immediate Resistance: $0.0000138 (short-term B-wave target).
- Major Resistance: $0.000015 (recent high and breakout validation level).
- Key Support: $0.000012 (0.5 Fib extension, previous low of five-wave drop).
- Critical Support: $0.000010 (0.786 Fibonacci extension and March 11 low).
- Bullish Continuation Trigger: Break above $0.000015 with a higher low above $0.000010.
- Bearish Continuation Trigger: A drop below $0.000010 suggests an extended correction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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