Shiba Inu (SHIB) price broke a long-term resistance line and showing signs of a full correction.
Shiba Inu coin price broke a descending resistance line in late January. Later, it reached a new yearly high at $0.0000154 before correcting lower. The decrease caused the verification of the line as support on May 7 (black icon). While the price has rallied, the daily RSI is still below 50. Therefore, it is not clear that the trend is bullish.
If the rise continues, Shiba Inu price could reach the $0.0000147 resistance area. However, if it breaks below the descending resistance line, it will confirm the trend is bearish. In that case, the downside momentum could extend towards the next closest support at $0.00000850.
Is the Shiba Inu (SHIB) Price Correction Complete?
Technical analysis on the six-hour time frame suggests that the entire SHIB price correction may be complete. The reason is wave count. SHIB completed a five-wave upward move that began in January and subsequently declined in an ABC formation. The ratio of waves A:C was exactly 1:1.
Furthermore, the overlap between the current high and wave A low (red line) indicates that the correction is complete. A breakout of the short-term descending resistance line and a retest of the 0.618 Fib (white) support will confirm this. However, if SHIB token price fails to break above, there could be a decline towards the $0.00000850 support.
To conclude, it is possible that SHIB price has completed an ABC correction and it will rise to at least $0.0000160. However, if it fails to break out of the descending resistance line, there could be a decline towards the $0.00000850 support area.
For the latest crypto market analysis from BeInCrypto, click here.
BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.