Shiba Inu (SHIB) Loses 20% Since Recent High, Forms Descending Triangle Pattern

Key Takeaways

• SHIB gains 87% since November 4, reaching $0.000030.
• A descending triangle signals a potential breakout direction.
• Upside targets are $0.000030+; downside risks extend to $0.000020.

Shiba Inu (SHIB) recently entered a new uptrend, gaining 87% by November 12 before correcting by over 20%.

The current descending triangle pattern signals an impending breakout, with both bullish and bearish scenarios possible.

SHIB Price Analysis

On March 4, Shiba Inu (SHIB) surged to $0.000045, its highest level since November 2021, representing a remarkable 400% increase from its February low.

However, by April 13, the price had retraced 60%, dropping to $0.000018 before rebounding 52% to reach the 0.618 Fibonacci level. Despite this partial recovery, bearish sentiment persisted.

By May 29, SHIB climbed to $0.000029 but fell to $0.000012 by July 5. A brief 37% rebound followed, but further declines brought the price to a new low of $0.000010 on Aug. 5.

At this point, the daily RSI signaled oversold conditions, prompting a recovery to $0.000012 and establishing horizontal support by Sept. 6. Positive momentum enabled SHIB to break out of descending and horizontal channels on Sept. 18.

On Sept. 28, SHIB reached $0.000021 but quickly reversed, falling 29% by Oct. 3. A 9% bounce from the horizontal support zone hinted at a potential retest of the broken resistance, forming a foundation for upward movement. 

Since Nov. 4, SHIB has been in a new uptrend, gaining 87% to hit $0.00003 by the 12. This marked the anticipated conclusion of a five-wave pattern originating from the August low, after which we saw over 20% decrease. 

SHIB Price Prediction

Recent price action reveals a completed lower-degree five-wave advance as of Nov 12, followed by a 26% drop to $0.000022.

A descending triangle is formed, characterized by lower highs and lower lows. 

Its support bounced, and the price made a minor recovery. It is currently being traded at C.

Considering the price context, there are a couple of possibilities ahead, but a breakout direction from the descending triangle will provide further insight into the primary one. 

If we see a breakout to the upside, it could mean SHIB is headed to a higher high, reaching values above $0.000030.

In this case, the descending triangle was in its corrective stage, and after it ended, the uptrend seen since November’s low will continue. 

On the other hand, the descending triangle could be only the first sub-wave of a higher degree correction, and even though a breakout to the upside occurs, the price will continue for a lower low of $0.000021. 

Thirdly, a breakout to the downside will lead to an immediate downtrend, returning the price to its value from the start of October below $0.000020.

These scenarios assume that the price ended its larger five-wave pattern from the August low and has entered its corrective stage since the Nov. 12 high. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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