Shiba Inu (SHIB) price has completed its relief rally and now the last wave of its corrective structure has started.
SHIB price has declined since February 4, when it reached a high of $0.0000157. There was a bearish divergence on the daily RSI before the decline (green line).
After the decline, the price corrected higher and it is now trading slightly above the $0.0000120 support area. This is an important zone as it has acted as both resistance and support intermittently over the past six months. Furthermore, the daily RSI is at 50, which indicates a neutral trend.
Consequently, whether Shiba Inu price closes below $0.0000120 or bounces higher could determine the future trend direction. A close below this could lead to a decline towards $0.0000102, while a bounce could result near $0.0000157.
To determine which is more likely, it is necessary to take a look at the lower time frames.
Shiba Inu (SHIB) prices expected to fall again
Technical analysis on the shorter six-hour time frame suggests that the price is in a bearish position. Shiba Inu token price completed a five-wave upward movement that led to a high at $0.0000157. Wave four forming a triangle and the subsequent sharp decline sets this wave count apart.
After the high, SHIB price declined to $0.0000117 before surging higher. The low formed a long lower wick, confirming the 0.5 Fib retracement level as support (white). This is an important support level as it corresponds to the horizontal support area defined earlier. So, it was probably the bottom of the corrective A wave.
If the count is correct, SHIB token price is now trapped in wave C of an ABC corrective structure which could end at $0.0000108, 0.618 Fib retracement support. After a correction, the Shiba Inu price could continue to rise towards the August 2022 high of $0.0000180.
This bullish Shiba Inu price prediction will be invalidated if the price breaks below the yearly low of $0.0000077. In that case, Shiba price could decline to $0.0000050.
However, a drop below this would jeopardize the upward move due to the strong support area at $0.0000102.
Shiba Inu (SHIB) channel correction included
The even shorter-term two-hour chart is consistent with this possibility. An ascending parallel channel consists of the Shiba Inu coin price movement. Such channels usually have corrective activities. Therefore, it is likely that there is a B wave in the channel.
Its breakdown will confirm that the C wave has started and is likely to lead to a low of $0.0000108. On the other hand, a breakout from the channel would put the bearish count at risk, while a rise above $0.0000157 would invalidate it and could lead to a high of $0.0000180.
In short, the Shiba Inu price forecast is likely to complete another downside correction. A move above the yearly high at $0.0000157 would signal the completion of a correction, with a potential upside move towards $0.0000180.
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