Shiba Inu (SHIB) Bulls Eye Breakout as Price Tests Major Resistance Zone

Key Takeaways

• SHIB completed a WXY correction on the daily chart.
• Falling wedge breakout is underway on lower timeframes.
• Major resistance lies between $0.00001263 and $0.00001516.

Shiba Inu (SHIB) seems to be nearing the end of a prolonged correction and on the verge of initiating a bullish impulse.

The daily chart reveals a completed correction and a bottoming consolidation pattern, signaling a potential trend reversal.

Recently, SHIB formed a five-wave upward movement on the intraday chart and is now testing a breakout from a descending consolidation pattern.

While the current setup hints at a bullish continuation, key confirmation levels remain ahead before any decisive move.

SHIB Price Analysis

Shiba Inu (SHIB) seems to have completed a prolonged WXY complex correction, bottoming out near the key $0.00001078 support zone, first on March 11 and again on April 7.

This support level aligns with both the previous horizontal range and the 1.0 Fibonacci extension from the W wave.

The final leg of the correction appears to form an ending diagonal (ABCDE) pattern, suggesting that the bearish momentum may be running out of steam.

After bouncing from this low, SHIB has entered a consolidation phase beneath the major resistance zone between $0.00001263 and $0.00001516.

This region coincides with the 0.786 Fibonacci retracement level and a crucial historical resistance cluster, making it an important breakout zone. A sustained move above this area could signal the start of a larger bullish trend.

The Relative Strength Index (RSI) is recovering daily from oversold conditions, indicating early momentum building. However, bulls must break out of the current range to confirm trend reversal.

If invalidated, the $0.00001078 support must hold to avoid a deeper retracement toward $0.00000683 or lower.

SHIB Price Prediction

The 1-hour chart highlights a five-wave impulse structure completed at $0.00001263, followed by an ABC correction that may have ended near $0.00001153.

SHIB is now testing the descending resistance of a falling wedge, with early signs of a breakout.

Should SHIB confirm this breakout, Fibonacci projections suggest short-term targets at $0.00001282 (0.618 Fib extension), $0.00001361 (1.0 Fib extension) and $0.00001490 (1.618 Fib extension).

These levels align with the upper boundary of the higher-timeframe resistance zone, reinforcing their significance.

However, a failure to break out would keep SHIB within a bearish continuation risk. A drop below $0.00001153 would invalidate the bullish setup and reintroduce the possibility of a retest of the $0.00001078 macro support. RSI has also turned up, supporting the case for bullish continuation, but volume confirmation is still lacking.

If momentum sustains and price closes above $0.00001263, we may see a rapid move toward the 1.272 and 1.618 extensions, completing a potential wave (iii) of a higher degree.

Key Levels to Watch

• Major Support: $0.00001078 (0.786 Fib of macro leg), $0.00001153 (local corrective low).
• Immediate Resistance:  $0.00001202 (0.236 Fib retracement), $0.00001263 (local impulse peak), $0.00001361 (1.0 Fib extension).
• Breakout Confirmation: Sustained close above $0.00001263 on strong volume.
• Invalidation Level: Drop below $0.00001153 would signal corrective extension.
• Fractal Watch Zone: $0.00001361–$0.00001490 (1.0–1.618 extension zone for wave (iii)).