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Shiba Inu (SHIB) Price Could Soar if It Clears This Level

2 mins
20 March 2023, 11:00 GMT+0000
Updated by Ali M.
20 March 2023, 11:36 GMT+0000
In Brief
  • Shiba Inu (SHIB) price broke out from a long-term descending resistance line.
  • It still follows a short-term one.
  • The Shiba Inu (SHIB) price has completed an A-B-C correction.
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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) Price Movement
SHIB/USDT Daily Chart. Source: TradingView

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. 

Shiba Inu (SHIB) price Wave Count
SHIB/USDT Six-Hour Chart. Source: TradingView

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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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.