Shiba Inu (SHIB) Challenges Descending Resistance Amid Market Uncertainty

Key Takeaways

• A descending wedge pattern suggests a potential breakout or breakdown.
• Fibonacci retracements highlight key resistance and support zones.
• RSI near oversold region signals possible reversal potential.

Shiba Inu (SHIB) is currently trading within a descending wedge formation after a prolonged correction from its previous peak.

The SHIB is consolidating within a key support range, and a decisive move is expected soon.

Both Fibonacci levels and Elliott Wave structures indicate potential turning points, making this a critical moment for SHIB’s next trend direction.

SHIB Price Analysis

The 4-hour SHIB chart reflects a clear Elliott Wave structure. The SHIB is undergoing an extended ABC correction within a descending wedge.

The decline from the previous wave (v) peak from Dec. 8, at $0.00003307, formed an ABC corrective pattern, testing key Fibonacci retracement levels.

SHIB is currently consolidating within the $0.00001478 – 0.00001550 support range, aligning with the green horizontal support zone.

Historically, price reactions at this zone have indicated possible accumulation phases before a reversal. 

However, a clean breakout above $0.00001701 (0.786 Fib, descending wedge’s upper boundary) would be necessary to confirm any bullish reversal.

From an Elliott Wave perspective, SHIB seems to be in the final stages of a complex corrective wave. If this holds true, a breakout from the wedge could signal the beginning of a new impulsive wave.

Conversely, a failure to hold the $0.00001478 support could push the price toward the $0.00001264 (1.0 Fib level), potentially extending the correction.

Momentum indicators, including the 4-hour Relative Strength Index (RSI), show near-oversold conditions, suggesting selling pressure might be weakening.

The last time RSI hit these levels, SHIB experienced a strong bounce, making it an important signal to watch.

SHIB Price Prediction

The 1-hour chart provides a more detailed perspective on SHIB’s short-term price movements.

Currently, SHIB is approaching a decision point within the descending wedge, where two primary scenarios emerge:

1. Bullish Breakout Scenario:
   If SHIB successfully breaks above $0.00001701, the next resistance lies at $0.00001946 and $0.0002044 (0.618 Fibonacci retracement). A confirmed close above this level could push SHIB toward $0.00002285 (0.5 Fib retracement), with an extended target near 0.00002526 (0.382 Fib). Given the downward exhaustion and the RSI positioning, this breakout scenario is plausible, especially if volume increases alongside price action.
2. Bearish Continuation Scenario:
   If SHIB fails to maintain its support above $0.00001478, it could continue downward, targeting $0.00001264 (1.0 Fibonacci retracement). If market conditions deteriorate, the descending wedge formation would extend into an additional corrective phase, with a potential deeper retracement toward $0.00000683.

Volume remains a key factor in determining the validity of either scenario. If SHIB moves upward with strong volume, the breakout will be confirmed.

However, a low-volume push might result in another rejection, leading to further consolidation.

Key Levels to Watch

• Immediate Resistance: $0.00001701 (0.786 Fibonacci level).
• Key Resistance: $0.00001946 (0.618 Fibonacci level).
• Critical Resistance: $0.00002285 (0.5 Fibonacci level).
• Immediate Support: $0.00001478 (local demand zone).
• Critical Support: $0.00001264 (1.0 Fibonacci level, last support).
• Short-Term Target: Above $0.00002285 if momentum sustains.
• Invalidation Zone: Below $0.00001264, signaling further downside potential.