Shiba Inu (SHIB) is ready to start a relief rally, after which we should expect another decline, which will complete the entire corrective structure
The rate of SHIB, a coin of the Shiba Inu project, has been losing ground since February 4, the day when the price reached a maximum of $0.0000157. This decline was preceded by bearish divergence signals on the daily RSI (green line).
The results of the technical analysis show that after the drawdown, the price bounced off the $0.0000120 horizontal support area and is now trading slightly above it.. This is a key area as it has alternated between support and resistance for six months.. In addition, the daily RSI is hovering around 50, signaling a neutral trend.
Thus, the direction of the further trend may depend on whether Shiba Inu closes below $0.0000120 or bounces from here.. In the first case, a further fall in the direction of $0.0000102 is likely, in the second case, an increase to highs in the area of $0.0000157.
Source: Trading View
The shorter 6-hour chart shows that Shiba completed a five-wave bullish structure that took the price to a high of $0.0000157.. A distinctive feature of this price movement was the triangle, which was part of wave 4, as well as the subsequent sharp decline.
After making a high, SHIB fell to the $0.0000117 low and then bounced off it (green icon). Against the background of this low, a long lower wick appeared. The price also tested the strength of the Fibo 0.5 correction support (white color). This is an important level, since it also coincides with the horizontal support area we highlighted above.
If our analysis is correct, then now Shiba Inu is in the ABC correctional structure, which may end in the area of the Fibo level 0.618 correction at $0.0000108. In this case, now the price is in wave B, the formation of which may be completed in the next day. Further, a rebound is expected towards the Fibo resistance levels 0.5-0.618 (black) at $0.0000137-$0.0000142, after which the rebound will be followed by a new decline to complete the correction.
After the correction, the token rate may rise to the maximum of August 2022 by $0.0000180.
Absorption of the yearly low of $0.0000077 will cancel the bullish outlook for SHIB and could trigger a fall to the low of $0.0000050.
However, a breakout of the strong horizontal $0.0000102 would also jeopardize the fate of the entire upside movement.
Source: Trading View
Thus, the most likely scenario for Shiba Inu is an increase to $0.0000137-$0.0000142, followed by another fall, completing the correction.. The absorption of the annual high of $0.0000157 will signal the completion of the correction and a likely increase above $0.0000180.
Earlier, the editors of BeInCrypto said that in January, the developers of Shiba Inu announced the imminent launch of a beta version of the Shibarium layer 2 scaling solution.
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