Shiba Inu (SHIB) Price Eyes Breakout After 35% Weekly Increase
Will Shiba Inu Break Out? | Credit: Derek Fenech
Key Takeaways
- 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.
Read More: Shiba Inu Price Prediction 2024 | SHIB Price Analysis
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.
According to the count, SHIB completed a five-wave decline shaped like a descending wedge. While it has increased since then, the movement resembles a corrective A-B-C structure (black).
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.
Shiba Inu (SHIB) Price Eyes 75% Surge if Key Resistance Is Broken
Shiba Inu Price Prediction 2025: SHIB Price Aims for Top Meme Coin Spot
Shytoshi Kusama: The Backstory of Shiba Inu Founder’s Mysterious Tweet
