Shiba Inu (SHIB) Price Slips 20% but Bulls Eye This Critical Area for a Bounce

Key Takeaways

• SHIB completed W-X-Y-X-Z correction and broke resistance.
• Wave 2 correction could end above the $0.00001160 support.
• Wave 3 target lies near the $0.00002460 resistance zone.

Shiba Inu (SHIB) has recently completed a five-wave bullish impulse on the lower time frame and is undergoing a corrective pullback, aligning with a broader reversal pattern observed on the daily chart.

The macro structure suggests the end of a W-X-Y-X-Z corrective phase, transitioning into a potential new impulsive wave.

Key Fibonacci levels, wave structures, and RSI support this narrative.

The upcoming days could be decisive in confirming whether SHIB can maintain bullish momentum.

SHIB Price Analysis

The higher time frame (1D) chart shows SHIB breaking out from a prolonged descending wedge, which finalized a complex W-X-Y-X-Z correction on April 7.

This bullish breakout saw SHIB reclaim the green support zone between $0.00001100 and $0.00001400, indicating strong demand.

On May 12, the price completed a five-wave impulsive structure to the upside to $0.00001740.

Since then, it has pulled back by nearly 20% and is consolidating within the prior demand zone.

The Relative Strength Index (RSI) on the daily chart remains neutral around 50, showing room for further upside without overbought pressure.

The price also respected the 0.236 Fibonacci retracement level at $0.00001603 as resistance during its last peak, confirming its importance.

The macro picture signals a potential transition from a corrective to an impulsive wave structure, supported by a higher low and breakout from falling resistance.

A sustained hold above $0.00001600 would confirm bullish continuation toward higher retracement levels.

However, since the price is trending downwards, it needs to maintain a higher low compared to April 7 to maintain the bullish outlook.

SHIB Price Prediction

On the 1-hour chart, SHIB appears to be forming an ABC corrective structure following its recent five-wave rise, which peaked around $0.00001740.

Wave A bottomed near $0.00001460, with wave B bouncing into the prior support, now acting as resistance around $0.00001520.

A descending channel formed, with its support/resistance well respected. Since its latest resistance interaction, a new downtrend has started.

Wave C appears to be underway, with the price currently sitting at the same length as wave A (1 Fib).

Potential downside targets the 1.618 Fib extension at $0.00001256, aligning with the lower boundary of the demand zone.

The green zone between $0.00001170 and $0.00001410 remains a critical area.

It acted as support during prior consolidation and aligned with the base of wave (IV) of the previous impulse, a common retracement target in Elliott Wave Theory.

Assuming the corrective wave completes within this zone, a bullish wave 3 could launch next, with upside targets toward $0.00001930 (0.382 Fib), $0.00002196 (0.5 Fib).

This scenario would be invalidated if a price drops below $0.00001072, breaking the macro higher low structure.

Momentum indicators are currently resetting, and RSI is nearing oversold, which supports a possible bounce from key support levels.

Key Levels to Watch

• Support: $0.00001410, $0.00001256, $0.00001160, $0.00001072.
• Resistance: $0.00001603, $0.00001931, $0.00002196, $0.00002462.
• Invalidation Level: Below $0.00001072.