Shiba Inu failed to live up to expectations this cycle. It was one of the worst-performing large-cap memecoins,
The trend has been bearish since March 2024, creating a lower high and a sharp decline in 2025. The SHIB price has fallen 50% this year alone.
However, the short-term price action suggests a shift may be underway. Shiba Inu shows early signs of recovery, hinting that the correction could end.
Can Shiba Inu break out and confirm the trend reversal? Let’s find out.
Shiba Inu Reaches Support
The weekly time frame chart shows that SHIB trades inside the $0.0000110 horizontal support area.
The area acted as resistance in 2023 and turned to support in 2024.
Shiba Inu’s wave count is bearish. Since 2021, the memecoin has completed a five-wave downward movement (red), meaning the long-term trend is bearish.
An A-B-C upward structure (green) following it confirmed this.
It is still unclear if the decrease since March 2024 is a new five-wave decline or another A-B-C structure.
However, technical indicators are bearish. The Relative Strength Index (RSI) is falling and is below 50.
The Moving Average Convergence/Divergence (MACD) is negative and decreasing.
So, the weekly time frame is inconclusive regarding whether the correction is over. Let’s look at a lower time frame and determine if it is.
SHIB Correction Over?
The daily time frame chart suggests the SHIB correction is ending for several reasons.
Shiba Inu has completed a five-wave decrease since the cycle high (red).
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The final portion of the decrease is a descending wedge, indicating an ending diagonal.
Technical indicators support the possibility of a breakout since the RSI and MACD have generated bullish divergences (orange).
While the SHIB price may create a slightly lower low inside the wedge, an eventual breakout is likely.
If one happens, the closest resistance will be at $0.000019, a horizontal and Fibonacci level.
Incoming SHIB Relief
The Shiba Inu price has fallen sharply since its cycle high in March. While the long-term trend is unclear, a relief rally is likely.
A SHIB price breakout from the descending wedge will confirm the upward movement, possibly causing the token to increase toward $0.000019.
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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