Shiba Inu (SHIB) Price Gains 15% but Encounters Mid-October Resistance Level Again
SHIB price started a new uptrend since Monday, but the momentum was stopped at same horizontal resistance from mid-October. Symmetrical triangle formed.
Key Takeaways
- SHIB tests critical resistance at $0.000019 after recent gains.
- The symmetrical triangle below the resistance suggests a potential bullish breakout.
- A downturn below $0.000015 invalidates the bullish wave count scenario.
Shiba Inu’s price has gradually recovered in recent weeks, which has been marked by key support and resistance interactions.
Current price activity hints at potential bullish patterns, contingent on upcoming breakout confirmations.
SHIB Price Analysis
On March 4, Shiba Inu (SHIB) surged to $0.000045, its highest point since November 2021, representing a 400% increase from its February low.
By April 13, however, the price retraced by 60% to $0.000018 before recovering 52% to the 0.618 Fibonacci level. Despite this rebound, bearish trends remained dominant.
By May 29, SHIB reached $0.000029 but declined to $0.000012 by July 5. Although it experienced a brief 37% rebound, this recovery was short-lived as the price fell to a new low of $0.000010 on Aug. 5.
At that stage, the daily RSI indicated oversold conditions. SHIB then rebounded to $0.000012, establishing horizontal support by Sept. 6.
Positive momentum followed, culminating in a breakout from the descending channel and the horizontal range on Sept. 18.
On Sept. 28, SHIB climbed to $0.000021 before reversing and falling 29% by Oct. 3. It then bounced 9% from the upper level of the horizontal support zone, suggesting a potential retest of the broken resistance and the establishment of new support for future upward movement.
On Nov. 8, it is again at its local horizontal resistance of $0.000019, established in mid-October. A breakout to the upside could confirm a bullish outlook.
SHIB Price Prediction
The sideways movement from the Sept. 28 high could be labeled as an ABCDE correction until Nov. 4, as it displayed a five-wave move.
That could mean SHIB initiated a new uptrend, ending its first sub-wave and likely developing its second one.
The hourly chart shows a symmetrical triangle formed below the horizontal resistance of $0.000019, which can be interpreted as a bull flag in this context. However, we can see a move below its support before further upside advancement.
Either way, a breakout above the horizontal resistance will confirm the bullish outlook, whether it should come immediately or after a slight pullback.
This would be expected as wave 5 from Aug. 5 and come to a target of $0.000026.
On the other hand, if sellers reject the price and it sharply declines within the horizontal support zone below $0.000015, this count becomes invalid.
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