What's In Store for Shiba Inu in November? | Credit: Hameem Sarwar
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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.
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.
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.
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.
