Key Takeaways
Shiba Inu (SHIB) has experienced significant price swings since its March surge. The coin has seen rapid gains, corrections, and breakouts from key levels, suggesting a potential new uptrend.
Current price action hints at two possible scenarios: SHIB continuing its five-wave pattern for higher highs, facing resistance, and consolidating within its horizontal support zone.
The pivot point at $0.000019 will likely determine its next move.
On March 4, Shiba Inu surged to $0.000045, marking its highest point since November 2021 and a 400% increase from its February low.
However, by April 13, the price retraced 60% to $0.000018 before rebounding 52% to the 0.618 Fibonacci level. Despite this recovery, bearish trends continued.
By May 29, SHIB reached $0.000029, followed by a downturn to $0.000012 on July 5.
While it quickly rebounded with a 37% gain, the recovery was short-lived, and SHIB hit a lower low of $0.000010 on Aug. 5, with the daily Relative Strength Index (RSI) entering oversold territory.
The price then bounced back to $0.000012, establishing horizontal support on Sept. 6. Positive momentum from Sept.18 resulted in a breakout above the descending channel and its horizontal range.
SHIB climbed to a high of $0.000021 on 28, but it immediately made a downturn, falling by 29% on Oct. 3 It landed on the horizontal support zone’s upper level and made a bounce of 9%.
Was this the retest of the broken resistance for support before it could continue further to the upside?
The hourly chart indicates that SHIB may have initiated an uptrend on Sept. 6, forming two sub-waves and developing wave three of a higher degree count on Sept. 28. The following decline threatened the five-wave pattern count as it started entering the territory of wave one. The decline was made in one go.
SHIBUSD upside expected | Credit: Nikola Lazic/Tradingview Two scenarios are ahead, but both point to short-term ascending price action. SHIB is set to continue a five-wave pattern and make a higher high of $0.000023, or it will make a lower high and continue moving inside the horizontal support zone.
The pivot point will be around $0.000019, our projected target for the current increase at its minimum.
Should the price continue moving above it, the likelihood of a higher high will increase. But if it finds resistance, another momentum downturn would look more likely.