The Shiba Inu (SHIB) price completed a short-term correction and was rejected by a horizontal resistance area.
Shiba Inu is one of the two most established meme coins, the other being Dogecoin (DOGE). Despite this, the Shiba Inu coin is not considered a Dogecoin killer. Instead, both coins have so far existed in harmony.
The SHIB token price has fallen below a long-term descending resistance line since Aug. 15. The line caused numerous rejections (red circle) between Oct. 29 and Nov. 4. It crashed swiftly below the $0.0000097 support area shortly afterward, reaching a low of $0.0000081 on Nov. 22.
Next, the Shiba Inu price began an upward movement, preceded by bullish divergence in the daily RSI (green line). While this led to an upward movement, the SHIB price failed to break out from the $0.0000097 resistance area. Rather, it created a long upper wick (red icon) and decreased considerably in the next 24 hours. This rejection was also combined with a daily RSI rejection from the 50 line.
As a result, the technical analysis from the daily time frame is bearish. A SHIB price reclaim of the $0.0000097 area would be required for the Shiba Inu price prediction to be bullish.
Shiba Inu Price Completes Short-Term Correction
The short-term six-hour chart also gives a bearish SHIB price prediction. The main reason for this is a completed W-X-Y upward corrective structure, in which waves A:C had a nearly 1:1 ratio.
If the drop continues, the closest support area can be found using the 1.61 external retracement on the recent increase. This would lead to a low of $0.000069 for the Shiba Inu price.
A move above the wave Y high (red line) of $0.00001 would invalidate this bearish SHIB price forecast.
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