The Shiba Inu (SHIB) price shows signs that it has already completed a correction. In order to confirm this and begin a new upward movement, it has to break out from its short-term resistance.
In late January, the Shiba Inu price broke through a descending resistance line. Following that, it rose to a new yearly high of $0.0000154 before falling. On May 7, the decrease resulted in the line being validated as support (black icon). While the price has since recovered, the daily RSI remains below 50. As a result, it is unclear whether the trend is bullish.
If the price of Shiba Inu continues to rise, it may reach the $0.0000147 resistance level. If it falls below the descending resistance line, it will confirm the bearish trend. In that case, the decline could accelerate toward the next closest support level at $0.00000850.
Shiba Inu (SHIB) Wave Count Shows Completed Correction
The six-hour time frame technical analysis indicates that the SHIB price may have completed an A-B-C correction after a five-wave upward movement.
The correction ended at the 0.786 Fib (white) retracement support level at $0.00000947. Then, the ensuing increase took the price slightly above the wave A low. This overlap (red line) supports the possibility that the correction is complete.
However, in order for this bullish reversal to be confirmed, the Shiba Inu token price has to break out from its short-term resistance line. If this occurs, the price could increase toward the previously outlined $0.0000147 resistance. The next 24 hours could be crucial in determining the correct movement.
On the other hand, if the line causes another rejection, the SHIB price could fall to the $0.00000850 support area.
To conclude, whether the price of Shiba breaks out from its short-term resistance line or gets rejected will confirm the future trend’s direction. A breakout could lead to highs near $0.0000147, while a rejection could lead to a fall toward $0.00000850.
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