Shiba Inu (SHIB) Consolidates After Recovery, Correction May Continue

Key Takeaways

• Price consolidation near critical 0.5 and 0.618 levels.
• Potential Elliott Wave impulse forming for bullish momentum.
• Breakout above the trendline signals a renewed upward trajectory.

SHIB hints at a completed corrective ABC pattern, consolidating near key Fibonacci levels. The price action suggests a potential Elliott Wave impulse forming.

A breakout above the descending trendline will be the first major sign of confirmation.

SHIB Price Analysis

The daily chart shows SHIB price movements, highlighting a corrective wave after completing a 5-wave impulse structure at $0.000033 on Dec. 8.

The price retraced to a low of $0.000018 on Dec. 20, falling below the 0.618 Fibonacci level, suggesting potential support. 

The daily Relative Strength Index (RSI) nears oversold conditions, signaling a possible rebound, but there is still more room to become oversold. 

SHIB has formed an ABC correction pattern, with the C wave nearing completion. This aligns with the broader Elliott Wave theory.

The horizontal zone could be a base for a bullish reversal, contingent on sufficient buying pressure and improving broader market sentiment.

Further upside potential is visible, with resistance levels at 0.00002790 (0.236 Fibonacci) and 0.00003308.

These levels align with prior key turning points. A breakout above 0.00002470 could solidify bullish momentum, though failure to hold current support risks deeper corrections toward the 0.618 retracement level.

Key Observations:

• SHIB has reached the previous consolidation zone.
• The corrective ABC wave pattern is nearing completion.
• Key resistance lies at 0.000024 and 0.0000279, aligning with Fibonacci levels.

SHIB Price Prediction 

The SHIB hourly chart shows the price consolidates after potentially completing a corrective ABC structure.

There is a strong chance its last rise marked the beginning of a new five-wave impulse, with waves (i) and (ii) completed and wave (iii) anticipated. A breakout above the descending trendline could confirm bullish momentum.

The RSI suggests neutral momentum, with no clear overbought or oversold signals, implying the potential for a directional move.

The price currently sits near key Fibonacci levels, with the 0.5 retracements acting as resistance and the 0.618 level providing strong support. A bounce from the current region may confirm a higher low.

Upside targets include 0.00002470 (0.382 Fibonacci) and 0.00002790 (0.236 Fibonacci) if the price breaks below 0.00001952 (0.618 Fibonacci), a retest of 0.00001584 (0.786 Fibonacci) could occur.

Sustained buying pressure is critical for SHIB to reclaim higher levels and validate the bullish Elliott Wave structure.

Key Levels to Watch:

• Resistance 1: 0.00002470 (0.382 Fibonacci)
• Resistance 2: 0.00002790 (0.236 Fibonacci)
• Trendline Breakout: Above descending resistance for bullish confirmation.
• Support 1: 0.00001952 (0.618 Fibonacci)
• Support 2: 0.00001584 (0.786 Fibonacci)
• Critical Zone: Sustained movement above 0.00002200 for momentum shift.