Key Takeaways
Shiba Inu (SHIB) stabilized after August 5, moving inside the horizontal range. Still, it started gaining traction on Sept. 6.
The coin shows mixed signals, oscillating between a bearish and a bullish scenario.
Still, with its recent bounce from horizontal and ascending support, the likelihood of a new upward advancement looks high.
On March 4, SHIB’s price soared to $0.000045, a 400% increase from its February low to its highest point since November 2021.
This rally was followed by a 60% retracement to $0.000018 by April 13 before a 52% rebound to the 0.618 Fibonacci level. Despite this partial recovery, bearish trends persisted.
By May 29, SHIB reached $0.000029 but fell to $0.000012 on July 5. It briefly rebounded 37% before hitting a new low of $0.000010 on Aug. 5, which led the daily Relative Strength Index (RSI) into oversold territory.
A recovery to $0.000012 followed, establishing horizontal support by Sept. 6. Positive momentum then led to a breakout from the descending and horizontal channels on Sept. 18.
SHIB peaked at $0.000021 on Sept. 28 but quickly reversed, dropping 29% by Oct. 3. It moved sideways again, retesting the upper level of horizontal support on Oct. 26, and has made a 19% recovery since then.
Was this a temporary reaction or the start of a new uptrend for its five-wave pattern development?
The hourly chart indicates that SHIB may have started an uptrend on Sept. 6, forming two sub-waves and progressing into wave three of a higher degree by Sept. 28.
However, the recent decline has encroached on wave one territory, putting the five-wave structure at risk.
From its last high, the sideways movement seen could still be wave 4, meaning that SHIB could have started a new upward advancement as the final wave in a five-wave pattern.
Two scenarios are possible in the short term, both hinting at some upward movement. SHIB may extend the five-wave pattern to reach a higher high at $0.000023 or form a lower high and consolidate within the horizontal support zone.
The previous local high, $0.000019, is a key monitoring level. If the uptrend continues, a higher high above $0.000020 could confirm a five-wave pattern.
Conversely, resistance at this level could trigger renewed bearish momentum.