Is the SHIB Correction Over? | Credit: Hameem Sarwar
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Key Takeaways
The SHIB price fell nearly 50% since its March high but bounced on March 18.
Shiba Inu increased significantly in March but still trails other memecoins.
Is the SHIB trend now bullish, or will another correction follow soon?
Shiba Inu’s daily Relative Strength Index (RSI) has made a bearish long-term three signal three times in its history. A similar signal was on the precipice of occurring last week, but this week’s bounce put a pause on it.
As uncertainty lingers, investors and traders are wondering if the SHIB dip is truly complete, or if the price is still at risk of falling into an extended correction.
How Is Shiba’s Bearish Signal Created?
An interesting observation is disclosed when looking at Shiba Inu’s daily price movement alongside its daily RSI. More specifically, the signal happens after the daily RSI reaches overbought territory (red circle) and then decreases below 50.
This has happened three times so far (red lines). All led to length and significant corrections.
SHIB/USDT Daily Chart | Credit: TradingView
In December 2021, the SHIB price fell by 55% over 24 days after the signal. In August 2022, it dropped 46% over 127 days and in February 2023, it decreased by 56% over 105 days.
The daily RSI for SHIB reached overbought territory in March 2024. While it was at risk of dropping below 50 last week, the ongoing bounce has saved the breakdown, invalidating the bearish signal at least temporarily.
SHIB Price Prediction: Is the Dip Complete?
A closer look at the movement during the past year suggests the memecoin is in wave three of a five-wave upward movement (white). Wave three is often the sharpest and has extended in SHIB’s case. The sub-wave count is given in black.
While the SHIB price fell by nearly 50% after its March high of $0.0000456, the wave count suggests the drop was post of sub-wave four, which is now complete with the bounce at the 0.5 to 0.618 Fibonnaci retracement support area.
SHIB/USDT 2-Day Chart | Credit: TradingView
If the count is correct, SHIB will soon begin the final portion of wave three. A potential target for the top of this movement is at $0.000059, created by the 1.61 external Fibonacci retracement. This could mark the top of wave three and start the correction wave four.
Potential SHIB Upswing
The Shiba Inu price has bounced significantly over the past two days, temporarily annulling a bearish signal that previously led to significant correction. The wave count suggests the local bottom is in and SHIB will increase considerably in April.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
