Shiba Inu Breaks Free from Descending Trend, Faces Crucial Test at Resistance Amidst Bullish Momentum
In a significant turn of events for Shiba Inu (SHIB) enthusiasts, the cryptocurrency’s price has finally broken free from the shackles of a descending resistance trend line that had persisted since the beginning of the year. This breakthrough, however, is met with a new challenge as the SHIB price encounters a formidable horizontal resistance level.
The journey of SHIB throughout the year has been marked by persistent downward pressure, reaching a low of $0.0000048 by June 10. Despite facing four unsuccessful breakout attempts, a notable shift occurred on December 3 when the SHIB price successfully breached the longstanding trend line. Nevertheless, optimism was tempered as the cryptocurrency failed to overcome a crucial resistance area, resulting in a rejection on December 11, as evidenced by a bearish candlestick.
Technical analysis, employing the Relative Strength Index (RSI) as a momentum indicator, reveals an intriguing perspective. With the daily RSI on an upward trajectory and positioned above 50, there are clear indications of a bullish trend, offering hope to SHIB enthusiasts.
Adding to the positive sentiment, the sixth edition of The Shib magazine, released on December 12, provides insights into Shibarium updates, MareBears, community contributions, and more. Notably, Shibarium has achieved a significant milestone, crossing 100 million transactions, underscoring its growing prominence as a Layer-2 blockchain.
Looking ahead, the six-hour time frame presents a bullish outlook for SHIB’s future trend, guided by the Elliott Wave theory. Analysts suggest that SHIB is currently in wave three of a five-wave upward movement, with a sub-wave count indicating a bullish 1-2/1-2 wave formation. The cryptocurrency is on the verge of breaking out from a parallel channel, and a successful breakout could confirm the bullish trend.
Predicting potential price targets, analysts propose a 25% increase above the current price of $0.0000125, with a target derived from a 1:1.61 ratio between waves one and three. A more optimistic scenario envisions wave three being 2.61 times the length of wave one, reaching $0.0000156, reflecting a substantial 55% increase in the SHIB price.
However, the article also highlights a cautious note—failure to break out from the channel may lead to a 17% decrease, bringing SHIB back toward the support trend line at $0.0000084. As SHIB enthusiasts eagerly await the unfolding events, the cryptocurrency market remains dynamic, presenting both opportunities and challenges on the horizon.
