Can Shiba Inu Follow Dogecoin’s Lead and Reach a New Yearly High?
Can Shiba Inu Reach New Yearly High? | Credit: Getty Images
Key Takeaways
- Shiba Inu’s price has fallen since reaching its yearly high on March 5.
- SHIB’s burn rate has increased significantly in the past 24 hours.
- Can SHIB resume its previous uptrend and reach a new yearly high?
While Shiba Inu‘s price has decreased since its yearly high on March 5, the DOGE price retraced its entire drop and reached a new yearly high of $0.22 on March 28.
Memecoins often mirror each other’s movement, especially DOGE and SHIB. Therefore, the question is whether SHIB will also begin an upward movement that takes it to a new yearly high.
Shiba Inu Falls After Yearly High
The weekly time frame chart shows that SHIB increased rapidly after breaking out from a long-term descending resistance trend line in February. The trend line had existed for 560 days before the breakout.
The upward movement led to a high of $0.000045 on March 5, reaching the 0.5 Fib retracement resistance level (red circle) of the entire drop since the all-time high.
SHIB has fallen since and currently trades at $0.000032. The weekly RSI and MACD are both trending upward, but the RSI is in overbought territory, potentially facilitating the drop since the all-time high.
There were a few positive announcements this week. The SHIB burn rate in the past 24 hours has increased by 1,200%. Also, the 18th edition of the memecoin’s magazine dropped yesterday. The publication highlighted the launch of Shiba Inu’s NFT venture, Lumibots , and the DAMN token, available in WoofSwap.
SHIB Price Prediction: Is the Correction Over?
The daily time frame chart suggests the SHIB correction ended on March 20, marking the end of wave four in a five-wave upward movement (black).
Afterwards, SHIB moved above the 0.5 Fibonacci retracement support level, confirming the previous drop was just a deviation (green circle).
The RSI and MACD both support this conclusion. The RSI bounced at 50 and is trending upward while the MACD has nearly made a bullish cross (green icons).
If wave five extends to 0.618 times the length of waves one and three combined, the SHIB price can increase by another 120%, reaching a target of $0.000072.
This bullish prediction will be invalid if SHIB falls below the March 20 low of $0.000023. This would mean the SHIB price is still correcting in wave four.
SHIB Can Follow in Dogecoin’s Footsteps
The SHIB price bounced on March 20, reclaiming a previously lost support level. This signifies that the correction is complete, and the SHIB price is expected to increase toward the next target, completing wave five in the process.
Shiba Inu Price Jumps 18% In 24 Hours as Burn Rate Increases — Can SHIB Recover More?
