Shiba Inu At a Breakout Point – Major Bull Signal for $SHIB?
SHIB token showing promising signs but will it maintain the upward momentum?
Key Takeaways
- SHIB’s price has grown 30% since early December.
- There is potential for SHIB to reach a new higher high.
- Uptrend continuation is crucial for a bullish phase in SHIB.
After a period of uncertainty, the price of Shiba Inu’s token SHIB is finally showing a decisive ascending move. From the start of December, it grew by around 30% and is not attempting to break from its crucial descending structure, which it has since mid-August 2022.
With the price previously forming its first higher low in October than in June and now attempting to surpass its previous high in August, this might be an early sign of a major bullish move ahead.
SHIN Price Analysis
From August last year, when the price rose to $0.000018, we saw a downtrend developing that formed a descending channel. Two consecutive lower highs and lower lows were made out of which the last low was on June 10 at $0.0000060, and its next lower high of $0.000011 was made on August 12, 2023.
After another interaction with the descending resistance on November 10, the price was sent down but found support at the 0.618 Fibonacci retracement level. Instead of continuing its downward trajectory, it bounced on November 22.
Because it made its first higher low in a while on October 19, the current uptrend could likely lead the price to its first higher high. We are currently seeing an attempt to break the descending channel’s resistance, but this might end as a wick like it did back in February.
The daily chart RSI is starting to touch the overbought zone, currently sitting at 70%, but this doesn’t mean the price cannot increase further. Previously, the RSI was in this vicinity, and we saw further upside movement.
SHIB Price Prediction
If this uptrend is indeed the continuation of the larger one, the price needs to continue moving upward to $0.000012, which would be a higher high than August 12. According to our count, this would be wave 3 of a five-wave impulse from October 19, and to validate this possibility, its length is crucial.
Then, the price needs to maintain trading above the broken descending resistance and validate it for support before we can anticipate further upside movements.
These two conditions need to be met, and only after can we see a sustainable uptrend and the start of a whole new bull phase for SHIB.
If we see an immediate rejection and a downfall below $0.000091, it would mean that the price entered back inside the territory of a descending channel, and the breakout would be invalidated.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
