Here's How Shiba Inu Can Increase 65% | Credit: Derek Fenech
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Key Takeaways
Shiba Inu (SHIB) trades inside the $0.0000325 resistance.
The SHIB price increased by nearly 50% in November.
Will Shiba Inu post a similar increase in December?
The Shiba Inu price has gradually increased since Aug. 5. The upward movement accelerated in November after the price broke out from its descending resistance trend line.
On Dec. 1, SHIB reached a high of $0.0000331, only 32% below its yearly high.
Despite its impressive increase, Shiba Inu has yet to break out from its main horizontal resistance area. Will it do so, and how much further can it increase if yes? Let’s find out.
The weekly time frame chart shows that SHIB trades inside the $0.0000325 horizontal resistance area. This is a critical area that has existed since 2022. While the SHIB price briefly moved above this area in March, it failed to sustain it, creating a long upper wick (black icon).
To reiterate its importance further, the resistance area coincides with the middle of an ascending parallel channel that has existed since the start of the year.
The channel’s resistance trend line is at $0.0000505. So, a breakout from the confluence of resistances can trigger a 66% Shiba Inu increase to the channel’s resistance trend line.
Technical indicators support the upward movement. The Moving Average Convergence/Divergence (MACD) has made a bullish cross (black circle) and is moving upward. The Relative Strength Index (RSI) is above 50 and increasing. The indicator has almost crossed above 70.
The RSI increase above 70 (white) catalyzed a parabolic rally, leading to a new all-time high in the previous market cycle.
Since the SHIB price trades at a confluence of resistances, a breakout from them, along with an increase in the RSI, could lead to a similarly parabolic upward movement.
Can SHIB Break Out?
While the weekly time frame chart gives a bullish SHIB prediction, the daily one warns of a retracement before the upward movement resumes. This is because of the wave count, price action, and indicator readings.
The wave count shows a complete five-wave upward movement (black). While this is likely wave one in a long-term five-wave increase (white), the SHIB price will likely be correct in the short term due to the completed count.
The price action aligns with this possibility. Since the upward movement started, SHIB has followed an ascending resistance trend line (black icons). The trend line rejected it three times, most recently on Dec.1.
Finally, the daily RSI has generated a bearish divergence, another sign of an impending decline. If one occurs, a likely target for the bottom of wave two is between the 0.382-0.5 Fibonacci retracement support levels at $0.0000219 – $0.0000246.
On the other hand, a breakout above the channel’s midline and the $0.0000325 area will mean the upward movement will continue toward the next target at $0.0000505
Dip Before Continuation
The long-term SHIB chart suggests the trend is bullish, and the price will move to new highs soon. A breakout from the $0.00000325 area can lead to a 65 SHIB price increase.
However, the shorter-term chart predicts an initial decline before the upward movement resumes.
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.
