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.
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.
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?
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.
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.
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