SHIB price falls after an attempted recovery. More downside expected as the correction further develops.
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Key Takeaways
SHIB has broken out of its accumulation phase and is consolidating within an ascending channel.
Key resistance is $0.000034, while support levels include $0.000026 and lower Fibonacci retracement levels.
RSI suggests room for consolidation or further correction before the next significant move.
SHIB’s recent performance reflects broader trends in the crypto market, with short-term corrections and key support levels crucial to shaping its price trajectory.
Investors closely monitor critical resistance and support zones to determine whether the asset will continue its bullish momentum or undergo further retracement.
SHIB Price Analysis
The SHIB daily chart shows a completed accumulation phase within the green accumulation zone between $0.000019 and $0.000014, followed by a breakout.
The impulsive structure has reached wave (v), marking a local peak around $0.000034. The price is now consolidating within an upward channel.
SHIBUSD in ascending channel | Credit: Nikola Lazic/TradingView
The Relative Strength Index (RSI) has moved out of the overbought territory, suggesting a potential for consolidation or retracement before further upside.
A retest of the lower channel boundary near $0.000026 could provide a key support area for continuing the bullish trend.
The overall trend is bullish as long as the price remains within the ascending channel.
A breakdown below $0.000026 could signal a deeper correction, while a breakout above $0.000034 would confirm further upward momentum.
Key Observations
SHIB completed its corrective phase and broke out into an impulsive wave structure.
The price consolidates within an ascending channel, with $0.000034 acting as immediate resistance.
Key support lies at $0.000026, the lower boundary of the channel.
RSI indicates reduced overbought pressure, leaving room for consolidation or a pullback.
A breakout above $0.000034 confirms a bullish continuation, while a breakdown below $0.000026 signals a deeper correction.
SHIB Price Prediction
The SHIB 1-hour chart shows a potential ABC corrective structure forming after completing wave (v) of a larger impulsive move.
The price attempts to recover within the $0.000028-$0.000030 resistance zone after finding temporary support near $0.000026, falling by around 7%. A further move down toward the 0.618 ($0.0000228) or 0.786 Fibonacci level ($0.0000195) could finalize the correction.
SHIBUSD a downturn more likely | Credit: Nikola Lazic/TradingView
The RSI indicates neutral momentum, leaving room for either a continuation of the correction or a potential breakout.
A bullish scenario may emerge if wave (b) pushes above $0.000030, invalidating the bearish outlook.
Otherwise, a drop below $0.000026 would confirm the continuation of the correction, targeting lower Fibonacci levels.
The key to determining the next move is monitoring the completion of wave (b).
A breakout above $0.000030 could signal a bullish continuation, while a failure to hold $0.000026 support would confirm further downside potential.
Key Levels to Watch
Resistance: $0.000028-$0.000030.
Immediate Support: $0.000026.
Critical Support: $0.0000228 (0.618 Fib) and $0.0000195 (0.786 Fib).
Break below $0.000026: Confirms a deeper corrective move.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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.
