Shiba Inu (SHIB) Price Drops 4% in October: Here’s Why the Second Half Could Be Better

Key Takeaways

• Shiba Inu (SHIB) has increased since bouncing on Aug. 5.
• The SHIB price cleared a confluence of resistance levels.
• Will Shiba Inu start catching up with other meme coins?

The Shiba Inu price has posted a mixed performance in 2024. While it started the year positively, SHIB has fallen since March. While SHIB has increased by 70% year to date, its increase lags well behind less established meme coins such as POPCAT, FLOKI, or PEPE. Furthermore, Shiba Inu fell 4% in October.

Let’s examine the Shiba Inu price action and see if it can finally accelerate its increase or if the meme coin will continue with its middling performance for the rest of October.

Shiba Inu Price Bounces

The SHIB analysis from the weekly time frame shows that the price has increased since Aug. 5, when it bounced in the middle of an ascending parallel channel. The bounce created a very long lower wick (white icon).

After the bounce, SHIB broke out from the $0.0000145 horizontal area and cleared a descending resistance trend line (white), which had been in place for 196 days before the breakout.

As a result, the breakout suggests the correction is over.

Finally, SHIB moved outside its long-term channel at the beginning of October, concluding the positive price action signs.

Technical indicators align with the bullish price action.

After the SHIB price broke out, the Relative Strength Index (RSI) moved above 50 (black circle). Similarly, the Moving Average Convergence/Divergence (MACD) made a bullish cross.

So, the weekly time frame price action and indicator readings are bullish. If the upward movement continues, the next resistance will be at $0.0000310.

Correction or Reversal?

While the weekly time frame SHIB price analysis and technical indicators lean bullish, the daily one is more unclear.

This stems from the wave count, which gives a bearish long-term outlook but a bullish short-term one.

The count indicates that the long-term trend is bearish since SHIB completed a five-wave decline since its yearly high in March. Based on the shape of a descending wedge, the move was a leading diagonal.

The increase that followed is likely an A-B-C corrective structure since there is significant overlap (red) in the highs and lows.

If true,  SHIB could be in wave B of this A-B-C corrective structure. Since SHIB has reached the $0.0000155 support area, it is possible wave B is over.

Wave C’s likely target is the $0.0000283- $0.0000325 Fibonacci retracement resistance level, which is 0.5-0.618 Fibonacci retracement resistance.

A SHIB price close above this level will mean that the upward movement is impulsive and that SHIB will move to new highs. Currently, this seems less likely.

Long-Term Trend Unclear

The SHIB price has increased since Aug. 5, breaking out from several resistance levels. However, it is still unclear if the upward movement is corrective or if it will lead to new highs.

For the trend to lean bullish, the SHIB price has to break out from the 0.5-0.618 Fibonacci retracement resistance area of $0.0000283-$0.0000325. The opposite is true for a bearish trend.

Read More: Shiba Inu Price Prediction 2024 | SHIB Price Analysis