The price of Shiba Inu (SHIB) is now trading within a crucial support zone that might spark a recovery. However, closing below it would neutralize any possible future bullish sentiment. SHIB pricing broke through a declining resistance line that has been in place since August 2022, on January 13. On February 4th, it reached a high of $0.0000157 as a result. At a price of $0.0000120 on average, the price has also reclaimed a significant resistance area.
In What Conditions SHIB could Make a Breakthrough?
Following the breakthrough, a bearish divergence within the overbought zone was formed by the daily RSI. Shiba Inu’s price has also developed a lengthy upper wick.
Soon after, there was a decrease that intensified on February 9th. The SHIB token price is currently trading once more inside the $0.0000120 region, validating it as support. As this location also corresponds with the declining resistance line, it becomes a critical level. If the SHIB price decreases, it will put into doubt the entire upward momentum. In this situation, the next closest support area would be $0.0000102.
Analysing the SHIB’s Condition
Technical analysis of the short-term six-hour timeframe suggests that SHIB has completed a five-wave rising rise. This propelled it to the peak of $0.0000157. The triangle that was a component of wave four is what makes this maneuver distinctive. In addition, wave five grew and reached a length that was equivalent to the sum of waves one and three.
If the count is accurate, the SHIB price is now stuck in an ABC corrective structure that might conclude at the $0.0000108 level, the 0.618 Fibonacci retracement support level. If so, wave B will begin in the next twenty-four hours and it is now on it. As a result, following a first bounce, there will be another decline to complete the correction.
In conclusion, the price is correcting following a month-long upward rise, according to the analysis on Shiba Inu. The upward trend seems likely to continue.
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