The Shiba Inu (SHIB) price signal shows that it has already completed a correction. To confirm this and start a new upward move, it needs to break out of its short-term resistance.
In late January, Shiba Inu price broke a descending resistance line. After that, it rose to a new yearly high at $0.0000154 before correcting lower. The decrease on May 7 resulted in the line being validated as support (black icon). While the price has corrected, the daily RSI remains below 50. As a result, it is not clear whether the trend is bullish or not.
If the Shiba Inu price continues to rise, it may reach the $0.0000147 resistance. If it breaks below the descending resistance line, it will confirm the bearish trend. In that case, the decline could extend towards the next nearest support at $0.00000850.
Shiba Inu (SHIB) wave count shows full improvement
Technical analysis on the six-hour time frame suggests that SHIB price may have completed an ABC correction following a five-wave upward move.
The correction ended at the 0.786 Fib (white) retracement support level at $0.00000947. Then, the subsequent rise took the price slightly above the low of wave A. This overlap (red line) supports the possibility that the correction is complete.
However, to confirm this bullish reversal, Shiba Inu Token price will need to break above its short-term resistance line. If it does, the price could move towards the previously mentioned $0.0000147 resistance. The next 24 hours could be crucial in setting the right pace.
On the other hand, if the line sustains another rejection, SHIB price could decline towards the $0.00000850 support area.
To conclude whether Shiba price breaks out of its short-term resistance line or gets rejected will confirm future trend direction. A breakout could lead to a high near $0.0000147, while a rejection could lead a decline towards $0.00000850.
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