Key Takeaways
Since reaching its cycle high in March 2024, Shiba Inu has struggled to keep up with the rest of the meme coin market.
While PEPE and FLOKI reached all-time highs later in the year, SHIB failed to do so, creating a lower high before losing its footing and breaking down.
After a sharp 65% decline, the price finally bounced, preventing a breakdown from a long-term horizontal support level.
However, SHIB faces a daunting task if it wants to reach its previous highs again.
With SHIB fading from the spotlight, the key question is whether the bounce is the beginning of the recovery or just a relief rally before Shiba Inu resumes its bearish trend in 2025.
The weekly time frame chart shows that SHIB broke out from a descending resistance trend line in November 2024, reaching a high of $0.0000334 the next month.
The high reached the $0.0000340 resistance area but created a lower high relative to the yearly high of March (black icon).
After a 65% decline, the Shiba Inu price bounced and is in the process of creating a bullish weekly candlestick (white icon). The bounce occurred at a diagonal and horizontal support level.
More specifically, it validated the $0.0000143 horizontal support area and the resistance trend line from which it broke out.
With the bounce, SHIB has created a horizontal range between $0.0000143 and $0.0000340.
Despite the relief, technical indicators are decisively bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both falling. They have also crossed their bearish thresholds at 50 and 0, respectively.
Aligning with this bearishness, the daily time frame shows that SHIB broke down from an ascending support trend line that has existed since August, a sign that the trend has turned bearish.
While SHIB created a bullish candlestick (white) on Feb. 3, this could simply lead to a retest of the support trend line before another decline.
For example, in the weekly time frame, the RSI and MACD do not show any bullish signs.
As a result, the daily and weekly time frames both give bearish SHIB predictions.
The long-term SHIB wave count is bearish, suggesting the price will fall to new lows.
The most likely count suggests that this cycle’s entire SHIB price increase was just an A-B-C correction (white) in reaction to the previous decline (highlighted).
If that is the case, SHIB has started another five-wave downward movement, and the coin is currently in wave three (black).
Despite the bearish prediction, the sub-wave count (yellow) suggests that SHIB has completed the first portion of its decline.
As a result, a relief rally is likely before the downward trend resumes.
In any case, the wave count aligns with the bearish price action and indicator readings.
This combination suggests that the SHIB price has reached its high point for the current market cycle.
So, future upward movements will simply be relief rallies in a long-term bearish trend.
The Shiba Inu Price has fallen impulsively since creating a lower high in December 2024.
Despite the ongoing bounce, the future Shiba outlook is bearish. The wave count suggests that SHIB will resume its downward trend after the relief rally ends and decline below its 2022 lows.