The Shiba Inu (SHIB) price increased by 35% last week.
SHIB trades inside a long-term horizontal resistance area.
Can the SHIB price maintain its momentum and break out?
The Shiba Inu (SHIB) price has trended upward at a gradual pace since Aug. 5. After creating a higher low in September, SHIB accelerated its rate of increase last week, creating a large bullish candlestick and breaking out from a descending resistance trend line.
Despite the increase, SHIB still trades inside a long-term horizontal resistance area. Let’s analyze the price action and approximate the chances of a successful breakout.
Shiba Inu Price Breaks Out
The weekly chart shows that SHIB has decreased under a descending resistance trend line since March. The decrease led to a low of $0.0000107 in August (white icon).
The price of SHIB bounced afterward, validating the $0.0000130 horizontal support area and creating a long lower wick (white icon).
After hovering under resistance, SHIB finally broke out last week, reaching a high of $0.0000216 inside the $0.0000195 resistance area.
Technical indicators in the weekly time frame are turning bullish for the first time one six months.
This is noticeable from both the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD), which are increasing above 50 and 0, respectively (black circle).
As a result, the weekly time frame implies that a breakout is likely soon.
Shiba Inu Relief Rally?
While the weekly time frame SHIB price action and indicator readings are bullish, the daily wave count is leaning bearish.
If this is true, SHIB has begun wave B to the downside. Even in this correction, the SHIB price will likely reach the 0.5-0.618 Fibonacci retracement resistance area. However, that will likely mark the top of the upward movement, which will be a relief rally.
The corrective count is likely because the SHIB price fell below the sub-wave one high (red) at $0.0000162.
While it is still technically possible that the increase is a five-wave diagonal (white), that seems unlikely at the current time.
Neither the RSI nor the MACD have generated any bearish divergences, so the upward movement may continue in the short term.
Key Resistance Ahead
After last week’s increase, the Shiba Inu price has all but confirmed that it has started its upward movement. However, it is still unclear if the move is corrective or impulsive. The reaction at the 0.5-0.618 Fibonacci retracement resistance at $0.0000283-$0.0000325 will be key in deciding the accurate SHIB price prediction.
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.
