Shiba Inu Price Forms First Higher Low in Over 30 Days – Is SHIB Correction Over?
Has the SHIB Price Completed Its Correction? | Credit: Getty Images
Key Takeaways
- The SHIB price has fallen since its yearly high on March 15.
- The decrease has been contained inside a symmetrical triangle.
- Can Shiba Inu’s price break out from the triangle in April?
The SHIB price has shown strength with an impressive bounce and recovery today, giving a bullish signal for the first time in over 30 days.
While the memecoin still trades in the consolidation pattern existing since March 5, the bounce and creation of the higher low suggest a breakout will transpire.
SHIB Begins Recovery
The SHIB price had fallen under a descending resistance trend line since reaching its yearly high of $0.000045 on March 5. The decrease seemingly caused a breakdown below the $0.000027 horizontal support area.
However, after two failed attempts at moving lower (red circles), the memecoin reclaimed the horizontal area. It then broke out from its trend line on March 24, establishing that the breakdown attempts were just deviations.
On April 3, the SHIB price returned to the $0.000027 area and validated it as support (green icon). This created the first higher low since the aforementioned yearly high.
While this is a sign that the short-term trend is turning bullish, doubts still remain about SHIB’s long-term trend.
SHIB Price Prediction: Is the Correction Over?
The daily time frame chart wave count and indicator readings both suggest the SHIB price has already reached its bottom.
The wave count predicts that SHIB is in wave four in a five-wave increase. Wave four took the shape of a symmetrical triangle, which is the most common pattern for this wave.
The daily RSI and MACD have both generated hidden bullish divergences (green). These are strong signs of trend continuation.
If the count is accurate, the SHIB price can increase by 175%, reaching a high of $0.000072. The target is found by giving wave five 0.618 times the length of waves one and three combined.
Despite this bullish prediction, a close below the triangle’s support trend line will invalidate the count and lead to new lows.
SHIB Breakout Anticipated
To conclude, the SHIB price shows bullish signs in both short- and long-term time frames, suggesting that the local bottom is in. A breakout from the current triangle pattern can accelerate the rate of increase and lead to new highs.
