Shiba Inu (SHIB) Price Creates Higher Low — Trend Direction Still Unclear

Key Takeaways

• Shiba Inu (SHIB) attempts to break out from a resistance trend line.
• The SHIB price trades inside a short-term symmetrical triangle pattern.
• Will Shiba Inu break out from this pattern, and where will it go if it does?

The Shiba Inu price has increased gradually since the start of October.  This contrasts with Dogecoin (DOGE), which seems to be leading the market.

However, Shiba Inu trades inside a symmetrical triangle pattern, a breakout above which can accelerate the rate of increase.

Will SHIB break out, and if yes, what’s the next target? Let’s find out.

SHIB Price Reaches Resistance

The weekly time frame SHIB chart shows the price has fallen under a descending resistance trend line for the past 245 days. The decline led to a low of $0.0000107 in August, causing a breakdown below the $0.0000145 horizontal support area.

However, the price bounced, creating a long lower wick (white icon) and reclaiming the area shortly afterward. SHIB has reached the resistance trend line again, making two more unsuccessful breakout attempts (black icons).

The bounce also validated the midline of the previous ascending parallel channel. The fact that the SHIB price has now broken out from the channel suggests that the increase is impulsive. If it breaks out from the trend line, the next resistance will be at $0.0000275.

Technical indicators lean bullish but are not decisive in predicting a breakout. The Relative Strength Index (RSI) is barely above 50, and the Moving Average Convergence/Divergence (MACD) is at 0 despite making a bullish cross.

Nevertheless, the positive price action makes a breakout more likely.

Higher Lows Lead to Breakout?

The daily time frame SHIB chart shows that the SHIB price has made three higher lows (white icons) since the start of October, creating an ascending support trend line. The SHIB price may be trading inside a symmetrical triangle, though the resistance trend line has not been validated sufficiently.

The wave count supports the triangle, suggesting that SHIB is in wave B of an A-B-C structure. Wave B often develops into a symmetrical triangle.

If this is the accurate count, the Shiba Inu price will eventually break out after more consolidation inside the triangle. Giving waves A:C the same length leads to a high of $0.0000285, aligning with the target from the weekly one.

Similarly to the weekly time frame, indicators in the daily one are mixed. The RSI and MACD are right at their bullish/bearish thresholds at 50 and 0, respectively. The only bullish sign is that the MACD has generated a hidden bullish divergence (green).

Despite the lack of confirmation from technical indicators, the positive price action and wave count make a breakout, which is the most likely Shiba Inu price prediction.

Trend Leans Bullish

The Shiba Inu trend leans bullish in weekly and daily time frames. Even though technical indicators do not confirm this outlook, the price action and wave count give a positive outlook.

A breakout from the short-term symmetrical triangle will confirm the upward movement has started.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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