Shiba Inu (SHIB) Price Breaks out After Shibarium Upgrade – Will It Reach New Highs?
The Shiba Inu (SHIB) price finally broke out from a descending resistance trend line that had been in place since the start of the year.
Despite the breakout, the SHIB price was rejected by a horizontal resistance area. Can it regain its footing and move above it?
Shiba Inu Finally Breaks out From Resistance
The daily time frame technical analysis shows that the SHIB price had fallen under a descending resistance trend line since January.
The decrease culminated with a low of $0.0000048 on June 10. Afterward, it created a long lower wick, initiating an upward movement.
After four unsuccessful breakout attempts (red icons), the SHIB price finally broke out from the trend line on Dec. 3. It reached a pivotal resistance area before falling slightly.
With the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The daily RSI is increasing and is above 50, both signs of a bullish trend.
The fifth edition of The Shib magazine came out on Dec. 5. The magazine has insights on an important Shibarium update, discusses the Marswap decentralized exchange, and has various interesting crypto stories.
Shibarium’s Puppynet upgrade will move its blockchain from the Goerli Network to the Sepolia network. It is the next step in the ongoing evolution of the blockchain in its attempt to become more scalable and efficient. The upgrade will also introduce a new mechanism that will make burning automated starting in January.
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SHIB Price Prediction – Can Price Begin Recovery?
The six-hour time frame gives two possibilities for the future SHIB price movement, both coming from the Elliott Wave count.
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
There are two potential counts for the future movement.
The bearish count suggests that SHIB just completed an A-B-C corrective structure. This possibility is supported by the fact that the price trades inside an ascending parallel channel, and waves A:C have an exactly 1:1 ratio.
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The second possibility suggests that the SHIB price is mired in a bullish 1-2/1-2 wave formation. The sub-wave count is in white, suggesting that the price is now in sub-wave two.
If the count is correct, the SHIB increase could accelerate greatly once the price breaks out from the channel. A potential target for sub-wave three’s local top would be $0.0000014, found by giving sub-waves 1:3 a 1:1.61 ratio.
Therefore, the future SHIB price prediction will depend on whether the meme coin breaks out from the channel or gets rejected.
If the SHIB price breaks out, it can increase by 47% to the next resistance at $0.000014. An 18% decrease to the channel’s support trend line at $0.0000080 will be likely in case of a rejection.
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Filed under: Bitcoin - @ December 8, 2023 2:22 pm