Shiba Inu (SHIB) Price Stalls After 90% Increase — Short-Term Bearish Trend Persists

Key Takeaways

• Shiba Inu (SHIB) trades in the middle of a long-term range.
• The SHIB price has increased by 40% so far in November.
• Has SHIB reached a local bottom, or is there more downside ahead?

Shiba Inu (SHIB) started November positively, breaking out from a confluence of resistances and reaching a 229-day high on Nov. 12. However, the price has fallen since, creating a lower high on Nov. 23.

Let’s examine the SHIB price action in different time frames, determining the end of the ongoing correction and where the price is likely to head afterward.

Shiba Inu Breaks Out

The weekly time frame SHIB chart shows an upward movement alongside an ascending support trend line (dashed) since June 2023. More recently, SHIB bounced at the trend line on Aug. 5 (white icon), creating a long lower wick and accelerating the rate of increase.

In the first week of November, SHIB broke out from a descending resistance trend line and reclaimed the $0.0000200 horizontal resistance area. Since the trend line has existed since the yearly high, its breakout is a sign that the correction is over.

The Shiba Inu price reached a high of $0.0000304 before falling slightly. It now trades in the middle of its long-term range of $0.0000200 – $0.0000335.

Technical indicators are bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing. The RSI is above 50, and the MACD is above 0, signs of a positive trend.

So, the weekly time frame suggests SHIB will eventually break out above its range high and reach new highs. The daily chart can help determine if it will continue falling in the short term or has reached a local bottom.

SHIB Price Corrects

The daily time frame chart gives a bearish SHIB price prediction. Shiba Inu has completed wave one in a five-wave upward movement (white) and is correcting in what is likely wave two. The sub-wave count is in black.

According to the count, SHIB is completing sub-wave C in the correction, which can end at the 0.5 Fibonacci retracement support level at $0.0000204. The price action and indicator readings also support the downward movement.

The price action shows several long upper wicks (black icons) and lower highs, while the RSI and MACD are falling and have made similar lower highs. The MACD also made a bearish cross (black circle)

Depending on the bottom of wave two, the first possible target for wave three is at $0.0000576, created by giving it the same length as wave one.

More Downside Ahead

While the long-term outlook for SHIB is bullish, the short-term trend is bearish. The price could continue falling until it reaches the 0.5 Fibonacci retracement support level at $0.0000205.

Then, the resumption of the long-term upward movement is likely.

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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