Shiba Inu (SHIB) Price Breaks Out — Struggles to Start an Uptrend

Key Takeaways

• SHIB gained 87%, peaking at $0.00003 on November 12.
• Descending triangle breakout signals possible continuation or extended correction.
• Potential targets: $0.000030 on upside, $0.000021 on downside.

After surging 87% from its Nov. 4 low to a high of $0.00003 by November 12, Shiba Inu (SHIB) entered a corrective phase, losing 25% and forming a descending triangle.

An upside breakout followed, but the price struggled to maintain upward momentum, leaving its trajectory uncertain.

SHIB Price Analysis

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

However, by April 13, the price had retraced 60%, dropping to $0.000018 before rebounding 52% to the 0.618 Fibonacci level.

Despite this partial recovery, bearish sentiment dominated, and SHIB faced continued volatility.

By May 29, SHIB climbed to $0.000029 but dropped to $0.000010 on Aug. 5. Oversold Relative Strength Index (RSI) conditions prompted a recovery to $0.000012, establishing horizontal support by Sept. 6.

On Sept. 18, SHIB broke out of descending and horizontal channels, reaching $0.000021 by Sept. 28 before reversing. A 9% bounce from horizontal support set the stage for a potential retest of resistance.

Since November 4, SHIB has entered a new uptrend, gaining 87% to reach $0.00003 by Nov. 12. This marked the conclusion of a five-wave pattern from its August low. A 25% decline followed, with the price action forming a descending triangle to a low of $0.000022 on Nov. 15. 

A breakout to the upside occurred, but the price is struggling to maintain its upward trajectory. 

SHIB Price Prediction

Recent movements suggest that SHIB completed a lower-degree five-wave advance on Nov. 12, followed by a 26% drop to $0.000022 and a descending triangle characterized by lower highs and lows.

The price has since rebounded slightly, trading within this formation.

As a breakout to the upside followed, two scenarios are possible ahead. 

Upside Breakout: SHIB could head for a higher high, exceeding $0.000030. This would suggest the descending triangle was part of a corrective stage, after which the November uptrend may resume.

Extended Correction: Even with an upside breakout, the triangle might represent the first sub-wave of a larger correction. SHIB could eventually drop to $0.000021 before finding a stable bottom.

These scenarios align with the notion that SHIB’s five-wave pattern from the August low concluded at the Nov. 12 high, with the current movement marking the start of a corrective phase.

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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