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 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.
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.
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.
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.
