Home / Analysis / Crypto / Technical Analysis / Shiba Inu Price Breaks 47-Day Resistance After $12 Million Team Fundraising – SHIB Correction Over?

Shiba Inu Price Breaks 47-Day Resistance After $12 Million Team Fundraising – SHIB Correction Over?

Last Updated April 22, 2024 11:27 AM
Valdrin Tahiri
Last Updated April 22, 2024 11:27 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The Shiba Inu team announced they have raised $12 million through selling TREAT.
  • The SHIB price broke out from a 47-day resistance existing since the yearly high.
  • Is the SHIB price correction over, or is the bounce part of a relief rally?

The Shiba Inu team announced a $12 million fundraising round, which was the biggest crypto fundraising this week. Even though the SHIB price did not react to the news, it previously broke out from a descending resistance trend line.

When combined with a nearly 50% increase since April 15, hints at the possibility that the nearly 50-day SHIB correction has ended.

Shiba Inu Raises $12 Million

On April 21, the Shiba Inu team announced they concluded $12 million fundraising round through the sale of its unrelease token, TREAT.  The main investors in the round were P2 Ventures, Mechanism Capital, Shima Capital and Animoca Brands. This is the biggest funding round since Centrifuge completed its Series A funding  for $15 million on April 16.

TREAT will be the utility and governance token of Shiba Inu’s privacy-focused Layer-3 blockchain. It will be the fourth token in the ecosystem, following SHIB, BONE and LEASH.

Shytoshi Kusama, the founder of Shiba Inu also teased the launch of ShibaSwap v.2, the new version of Shiba Inu’s decentralized exchange.

While the SHIB price has increased since April 14, it did not react to the announcement.

SHIB Price Prediction: Is the Correction Over?

The SHIB price had fallen under a descending resistance trend line since its yearly high $0.000045 on March 5. The decrease followed a descending resistance trend line and culminated with a low of $0.000018 on April 13. SHIB has increased since, breaking out from the descending resistance trend line on April 27, after 47 days.

The daily RSI and MACD both support the wave count. The RSI has increased above 50 (green icon) while the MACD just made a bullish cross (green circle), both signs of a bullish trend.

The wave count suggests the correction is over. The SHIB price started a five-wave upward movement in October 2023. Wave three ended with the aforementioned yearly high on March 5.

SHIB Price Prediction
SHIB/USDT Daily Chart | Credit: TradingView

If the count is accurate, the ongoing bounce and breakout marks the start of wave five. This aligns with the bullish readings in the RSI and MACD.

In turn, the first potential target for a top will be at an average of $0.000061. This is created by the 1.61 external Fibonacci retracement of wave four (black) and would give wave five 0.382 times the length of waves one and three combined.

Conversely, falling below the April 15 low will invalidate the bullish count. In that case, SHIB would continue falling to new lows.

May Can Lead to New Yearly High

The SHIB price breakout from its descending resistance trend line is an important step in continuing the price increase. The wave count and indicator readings align with the bullish price action, suggesting the memecoin will reach a new yearly high in May.

Was this Article helpful? Yes No