Shiba Inu (SHIB) Reclaims Long-Term Range — 40% Price Increase Could Follow

Key Takeaways

• Shiba Inu (SHIB) is trading inside a long-term horizontal range.
• The SHIB price reclaimed the range low at the start of November.
• Can SHIB finally build on its momentum and reach a new yearly high?

The Shiba Inu price increased rapidly at the beginning of the month, culminating with a high of $0.0000304 on Nov. 12. Even though the price has fallen slightly since, the increase caused a reclaim of a long-term horizontal range, boding well for the future trend.

If SHIB successfully confirms the range low as support, it would make an upward movement toward the range high and beyond a possibility. Let’s analyze the SHIB price action and see how likely this is.

Shiba Inu’s Range

The weekly time frame SHIB chart shows that the price is trading inside a horizontal range between $0.0000215 and $0.0000350. The range has existed since 2022 but the SHIB price fell below it in July (black circle).

In the first week of November, the SHIB price created a bullish engulfing candlestick and reclaimed the range low. It is currently in the process of validating it as support. Even though the SHIB price trades more than 70% below its all-time high, the $0.0000350 resistance area is the final one before the high. So, a breakout above it can greatly accelerate the rate of increase.

Technical indicators give a bullish SHIB price prediction. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both increasing. Furthermore, they have both moved above their bullish thresholds at 50 and 0, respectively.

So, the weekly time frame suggests the SHIB price will reach the range high and eventually break out.

What Analysts are Saying

SHIB sentiment on X is positive. Javon Marks believes the SHIB price can increase over 300%, mirroring the upward movement earlier in the year. Because of the breakout from the descending wedge, he gives a target of $0.000081 for the top of the next increase.

ShibSpain suggests  the SHIB price is on the verge of a breakout from a short-term descending resistance trend line, while AltCryptoGems noted that nearly 1.7 trillion SHIB have been withdrawn  from exchanges, something that could lead to a supply shock.

However, the most bullish target by far comes from TheMoonCarl , who tweeted that he will not sell any SHIB until $1.

This seems extremely unlikely, since at the current supply a SHIB price of $1 would lead to a market capitalization of $589 trillion, over 25 times that of Bitcoin.

Let’s look at the wave count and attempt to determine a realistic target for the top of the SHIB upward movement.

SHIB Yearly High

The weekly time frame wave count suggests that SHIB is in wave three in a five-wave upward movement that started in June 2023. Wave three started on Aug. 5 and was confirmed with the reclaim of the range low.

If wave three has 1.61 times the length of wave one, the price will reach a high of $0.000075, slightly below the all-time high. The target would cause a breakout from the final horizontal resistance area at $0.000070 and is over 200% above the current price.

The shorter-term wave count suggests that SHUB has completed sub-wave one (black) in wave three. So, it suggests that an initial retracement is likely before the price resumes its upward movement.

The closest support that can act as the bottom for wave two is created by the 0.382-0.5 Fibonacci retracement support levels at $0.0000208-$0.0000230. Since the Shiba Inu price has already reached the upper portion of this range, the correction may be over.

After sub-wave two, SHIB will likely begin sub-wave three, which is usually the most rapid in a five-wave increase. The daily RSI supports this bullish outlook even though it is falling. The indicator is above 50 and has generated a hidden bullish divergence (green), a sign of trend continuation.

Shor-Term Drop Almost Over

The Shiba Inu’s reclaim of its long-term range suggests that the trend is bullish and that the upward movement will continue. In the short term, SHIB could complete its correction soon and resume its long-term ascent.

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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