Shiba Inu (SHIB) has been making a recovery following a sharp 30% decline, and is currently attempting to rebound from several key support levels.
A successful rebound would confirm that the correction is complete.
Technical analysis indicates that the value of the Shiba Inu project coin (SHIB) has been on a downward trend since hitting a high of $0.0000157 on February 4th.
The drop was preceded by strong signals of bearish divergence on the daily RSI (green line), leading to a low of $0.0000107 on March 4th.
An important indicator of the bearish trend was the break of the $0.0000122 support level. Currently, Shiba Inu is attempting to transform its former long-term downward resistance (green circle) into support.
If this attempt fails, SHIB may decline to the next support level at $0.0000100. On the other hand, if the market successfully rebounds, the bulls may aim to retest the $0.0000122 area.
Source: Trading View
On the 6-hour chart, wave analysis indicates that the bottom of Shiba Inu’s price is nearing. It’s possible that the coin has already formed a corrective A-B-C structure starting from its annual highs on February 5th.
This means that SHIB is currently either in wave C or has already finished the correction.
According to an A:C wave ratio of 1:1, the low point could be $0.0000099.
Although the price hasn’t reached this level, it has already hit the 0.618 correction Fibo level at $0.0000108, which could be a signal of the correction’s completion.
Additionally, a small bullish divergence in the RSI supports this assumption.
The most likely scenario for Shiba Inu is the completion of wave C between these two levels, followed by a rise in the coin’s value.
However, if the price drops below the Wave 1 low of $0.0000078, this bullish outlook will be cancelled and may trigger a dip in price towards $0.0000050.
Source: Trading View
It’s important to note that any investment carries risk, and the information provided here is not financial advice.
Please do your own research before making any investment decisions.
Regarding the SHIB rate, it’s expected to find a support level around $0.0000100 and begin an upward trend from there.
However, if the price falls below $0.0000078, this bullish outlook will be reversed and may lead to a target of $0.0000050 for bears.