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Shiba Inu (SHIB) Price Rebounds as Key Support Level Holds

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • SHIB’s price struggles below key resistance at $0.000019.
  • Wave structure development could indicate a new uptrend.
  • Bearish momentum may return if resistance holds firm.

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.

SHIB Price Analysis

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.

SHIB price analysis
SHIBUSD in an ascending channel | Credit: Nikola Lazic/Tradingview 

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? 

SHIB Price Prediction

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.

SHIB price analysis
SHIBUSD uptrend could be developing | Credit: Nikola Lazic/Tradingview 

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. 

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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