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Shiba Inu Price Bottom has been Called: Where can SHIB Reach Short Term?

Last Updated October 10, 2023 9:06 AM
Nikola Lazic
Last Updated October 10, 2023 9:06 AM

Key Takeaways

  • SHIB reached its lowest point during the current bear cycle on June 10.
  • Price is now back at its pre-pump levels.
  • Chart analysis points out a potential upside if it holds this level.

Shiba Inu, a meme coin that gained popularity after Dogecoin’s  success, has experienced a substantial decline of 94% from its peak in October 2021, when it reached $0.000085. This decline reached its lowest point on June 10, 2023, at $0.0000055.

Interestingly, this level closely aligns with the price range before the significant surge in August and September of 2021, and it has consistently served as a support level.

While there was a promising 100% recovery from the June low to mid-August, a subsequent downturn has brought the price back to $0.0000070, where it currently stands.

Could this indicate the initiation of a bullish trend and the establishment of a higher low? Only time will tell.

SHIB Price Analysis

After reaching its all-time high, the price began a gradual descent, followed by a more pronounced decline from April 2022 to June 20, ultimately bottoming out at $0.0000072.

Remarkably, this exact level is where the price is presently trading, undergoing a critical test for support since it revisited this level on September 11, 2023, and has since moved sideways.

SHIB could have found the bottom
SHIB could have found the bottom

On June 10, it reached the lowest point in this ongoing bear cycle, touching $0.0000055 before staging a subsequent recovery.

However, this recovery, which extended until mid-August, encountered a familiar obstacle at the descending resistance level. Remarkably, this marked the third instance where the price interaction ended in rejection.

Interestingly, on August 12, when it reached its most recent high of $0.000011, the RSI signaled an overbought condition, similar to what had occurred during previous highs in February and August 2022. Could this last high in August represent the culmination of the initial bullish wave?

SHIB Price Prediction 

It’s plausible that the low on June 10 could potentially be considered the price floor for SHIB, but this remains unconfirmed. A more compelling scenario is that the upswing from June to mid-August may have constituted the fifth corrective wave within the larger WXYXZ structure.

At key support
It has reached a key support.

The pivotal factor lies in the current price level. In the most recent upswing, the price retraced to the 0.618 Fibonacci level, a common occurrence in the second wave of a typical five-wave impulse. For this potential new bullish cycle to gain traction, it must maintain its position above this level, which it is actively striving to achieve.

However, should it fail to do so, there is the risk of a continued downtrend for SHIB, possibly leading to a new all-time low, potentially below its pre-pump levels at around $0.0000040.

Conversely, if there is a swift and robust upward movement, a breakout above the descending resistance could materialize, with a price target of $0.000018 on the horizon.

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.

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