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Shiba Inu (SHIB) Challenges Horizontal Resistance Following 10% Daily Surge

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • SHIB completed an ABC corrective structure on the daily chart
  • The uptrend is emerging, supported by the ascending trendline.
  • Resistance at key Fibonacci levels will test the bullish scenario.

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. 

SHIB Price Analysis 

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.

SHIB price analysis
SHIBUSD at horizontal resistance | Credit: Nikola Lazic/TradingView 

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.

SHIB Price Prediction 

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.

SHIB price analysis
SHIBUSD developing wave 3 | Credit: Nikola Lazic/TradingView 

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.

Key Levels to Watch

  • Immediate Resistance: $0.00002790 (0.236 Fibonacci level on the daily chart).
  • Secondary Resistance: $0.00003000 (psychological level and potential Wave (v) target).
  • Immediate Support: $0.00002425 (0.382 Fibonacci retracement on the daily chart).
  • Critical Support: $0.00002111 (0.5 Fibonacci retracement on the daily chart).
  • Invalidation Zone: Below $0.00001946 (0.618 Fibonacci retracement).
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.
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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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