Key Takeaways
Shiba Inu (SHIB) has displayed significant bullish momentum, rising 10% today.
The daily chart shows SHIB attempting to resume a broader upward trend after completing an ABC corrective structure.
In contrast, the hourly chart provides insights into potential short-term targets and scenarios.
The daily chart reveals SHIB recovering from a low of $0.00001946, where it found support near the 0.618 Fibonacci retracement of its prior impulse.
This aligns with the conclusion of an ABC corrective wave, suggesting the onset of a new bullish impulsive wave.
The price found support above the ascending trendline and is now testing the horizontal level of its prior high near 0.382 Fibonacci level.
The previous red candle made a pullback that respected the 0.5 Fibonacci retracement at $0.00002111, reinforcing its role as key support.
As the Relative Strength Index (RSI) indicates, momentum steadily rises but remains below overbought levels, hinting at room for upward upward movement.
A decisive breakout above the 0.382 Fibonacci level at $0.00002425 would confirm a larger uptrend, potentially targeting higher resistance zones.
Considering the depth of the ABC correction, the next impulsive move should trigger a larger rise, leading to a higher high above December’s of $0.000033.
The hourly chart highlights an emerging five-wave impulsive structure. Wave (i) propelled SHIB to $0.00002300 before a minor Wave (ii) correction retraced to $0.00002150.
Wave (iii) appears to progress, with strong bullish momentum breaking above prior local resistance.
Using Fibonacci extensions, Wave (iii) is projected to target $0.00002790 (1.618 extension), followed by a corrective Wave (iv) retest of $0.00002500 or $0.00002425.
The final Wave (v) could push SHIB to or above $0.00002800, with extensions up to $0.00003000 possible if bullish sentiment persists.
RSI on the hourly chart supports this view, showing rising momentum. However, it is entering overbought conditions, which should be considered a caution sign.
On the other hand, we can see a rejection at the 0.382 Fib, causing a downturn. In a bearish scenario, a break below the ascending trendline near $0.00002150 would invalidate the impulsive structure, potentially leading to further downside toward $0.00001946.