Shiba Inu (SHIB) Gains in October — Early November Could Bring a Price Dip
What's In Store for Shiba Inu in November? | Credit: Hameem Sarwar
Key Takeaways
- Shiba Inu’s (SHIB) price increased by only 2% in October.
- The price trades inside a short-term corrective channel pattern.
- Will SHIB break down from the channel, or can it bounce instead?
The Shiba Inu price broke out from a long-term descending resistance trend line but failed to sustain the increase afterward. After the initial rejection, SHIB started another bounce but risks invalidating it since it trades in a corrective pattern.
The SHIB performance in October was neutral, leading to only a 2% increase. This leads to the question: Was Shiba Inu’s breakout illegitimate, or is the price just retracing in preparation for another long-term increase? Let’s find out.
SHIB Struggles After Breakout
The weekly time frame Shiba Inu chart shows that the price broke out from a descending resistance trend line since the yearly high of $0.0000456 in March.
Before the breakout, it seemed that SHIB broke below the $0.0000145 horizontal support area (black circle). However, the price regained footing and reclaimed the support area while breaking from the trend line.
However, SHIB failed to sustain its increase and did not break out from the $0.0000215 resistance area (black icon).
These two areas create a horizontal range, and SHIB trades are in the middle of this range.
Technical indicators are giving mixed readings. During the breakout, the Relative Strength Index (RSI) increased above 50, however it now risks breaking down.
The Moving Average Convergence/Divergence (MACD) made a bullish cross but failed to increase above 0.
So, the weekly time frame readings are insufficient to predict the direction of future trends.
SHIB Price Breakdown Ahead?
While the weekly time frame gives mixed readings, the daily one predicts a bearish SHIB price because of both the price action and wave count.
According to the price action, the bounce started on Oct. 1 is corrective since it is inside an ascending parallel channel.
Currently, the SHIB price trades in the lower portion of this channel, making a breakdown likely.
The wave count also suggests that the channel movement is part of wave B in an A-B-C corrective structure. If this is the case, SHIB has started wave C.
If waves A:C have the same length, the price will break down from the channel and fall to a low of $0.0000142, close to the previously outlined $0.0000145 support area.
This would mark the end of the correction before SHIB begins an upward movement toward the long-term range high.
SHIB to Decline to Support
While the long-term SHIB price analysis gives unclear readings, the daily one predicts a breakdown from the current pattern.
If that happens, SHIB will return to its long-term horizontal support before eventually resuming its previous increase.
Shiba Inu (SHIB) Price Risks 20% Decline if This Structure Fails to Hold
