Shiba Inu (SHIB) Price Drops 20% After Rejection — Correction May Be Near Its End

Key Takeaways

• Shiba Inu (SHIB) was rejected from its range high.
• SHIB follows an ascending support trend line.
• When will the Shiba Inu price reach a local bottom?

The Shiba Inu price has fallen since its $0.0000334 high on Dec. 8. The decline has so far amounted to 20%.

Before the drop, Shiba Inu was on its way to reaching a new yearly high, and the decrease has put the bullish trend at risk.

Will Shiba Inu reach a local bottom soon and resume its ascent, or is the upward movement over? Let’s find out.

SHIB Price Drops

The weekly time frame chart shows that the SHIB price has fallen since it was rejected by the $0.0000345 range high in December (black icon).

The area has provided resistance since 2022 and thwarted the attempt at a breakout during the March yearly high of $0.0000456 (black circle).

The SHIB price is nearing the range low of $0.0000218, which will likely provide support. SHIB previously broke out above this level in November, creating the current range.

Despite the rejection, technical indicators are still bullish. The Relative Strength Index (RSI) is above 50, and the Moving Average Convergence/Divergence (MACD) is above 0.

While the indicators are falling, they could retest their breakout levels before continuing higher, similar to the price.

As a result, the weekly time frame leans bullish, indicating that SHIB is likely retesting its previous breakout level as support and will eventually break out above its range high.

Local Bottom Soon?

The daily time frame chart aligns with this possibility, suggesting the SHIB price drop is the final portion of its correction, after which the previous upward movement will resume.

The breakout from an ascending parallel channel indicates that the rally is impulsive.

The wave count suggests the Shiba Inu price is correcting in wave two (white) of a five-wave upward movement. The sub-wave count is black, indicating that SHIB is in sub-wave C.

There is a confluence of support between $0.0000210-$0.0000230, created by a horizontal support area, the 0.5 Fibonacci retracement support level, and the middle of the previous channel.

Because of this confluence, the SHIB price is likely to reach a local bottom there. Afterward, the upward trend could continue toward the range high and beyond.

Positive 2025

The SHIB price has fallen since a rejection from its range high. The correction could continue in the short term, ending 2024 on a bearish note.

However, the long-term trend is likely still bullish, and Shiba Inu will eventually break out from its high range, beginning another upward movement in 2025.