Shiba Inu (SHIB) Dips, but Signs Point to a Possible October Rebound

Key Takeaways

• Shiba Inu (SHIB) trades above a confluence of support levels.
• The SHIB price broke out from a descending resistance trend line.
• Will Shiba Inu post a positive rate of increase during October?

The Shiba Inu price fell at the start of October but has regained its footing in the past five days. While SHIB created a higher low, it trades well below its September high.

Let’s analyze the SHIB price action and see if the price can maintain its increase and break out above its previous highs.

Shiba Inu Price Hovers Above Support

The weekly time frame SHIB chart shows that the price has reclaimed a confluence of support levels.

After bouncing on Aug. 5 (white icon), SHIB created a long lower wick and validated the middle of an ascending parallel channel.

Then, it moved above the $0.0000145 horizontal area and broke out from a descending resistance trend line (white icon).

The trend line existed for 196 days before the breakout, so the movement outside is a decisive bullish sign.

Technical indicators also validate the upward movement.

After the breakout, the Relative Strength Index (RSI) increased above 50 (black circle), and the Moving Average Convergence/Divergence (MACD) made a bullish cross.

As a result, the weekly time frame provides a bullish outlook. The next closest resistance area is at $0.0000310.

SHIB Price Bounces

The weekly time frame SHIB price action and technical indicators give a positive SHIB price prediction. However, the daily wave count is not as decisive. It gives a bullish short-term outlook but a bearish long-term one.

The most likely count shows that SHIB completed a five-wave decline, a leading diagonal based on its descending wedge shape.

The ensuing upward movement could be an A-B-C structure because of its overlap (red).

So, SHIB is likely in wave B, which can end at the closest support of $0.0000155. Then, the price can begin to wave C, taking it to the 0.5-0.618 Fibonacci retracement resistance level of $0.0000283- $0.0000325.

If the SHIB price clears this level, it will be possible that the increase was impulsive. However, this seems unlikely at the current time.

Unclear Trend Ahead

The SHIB price regained footing in the past five days, creating a higher low. However, the increase may be corrective and lead to new lows.

While a short-term upward movement is likely, the reaction once the SHIB price reaches the 0.5-0.618 Fibonacci area can determine if the long-term trend is bullish or bearish.

Read More: Shiba Inu Price Prediction 2024 | SHIB Price Analysis