In a significant development for Shiba Inu (SHIB) investors, the meme coin has finally broken free from a descending resistance trend line that had constrained its price movement since the beginning of the year. However, despite this breakthrough, SHIB faces challenges at a horizontal resistance area, prompting questions about its ability to sustain the newfound momentum.
Breaking Free from Descending Resistance: Analyzing the daily time frame, the technical analysis reveals that SHIB’s price had been suppressed by a descending resistance trend line since January, reaching a low of $0.0000048 on June 10. After several unsuccessful breakout attempts, SHIB finally breached the trend line on December 3, marking a potential shift in its price trajectory. However, the breakout was met with resistance at a crucial horizontal level.
Momentum Indicators and Recent Developments: Examining the Relative Strength Index (RSI) as a momentum indicator, the analysis indicates that bulls currently hold an advantage. The daily RSI is on an upward trend and positioned above 50, suggesting a favorable market for the meme coin.
The release of the fifth edition of The Shib magazine on December 5 adds to the narrative. The magazine discusses key updates, including the Shibarium’s Puppynet upgrade, which aims to enhance scalability and efficiency. Notably, the upgrade introduces an automated burning mechanism set to commence in January.
SHIB Price Prediction – Elliott Wave Analysis: The six-hour time frame introduces two potential scenarios for SHIB’s future price movement based on Elliott Wave theory, which analyzes recurring long-term patterns and investor psychology.
The bearish scenario proposes that SHIB has completed an A-B-C corrective structure, supported by the coin trading within an ascending parallel channel, with waves A:C maintaining a 1:1 ratio.
The bullish scenario suggests that SHIB is engaged in a 1-2/1-2 wave formation, with the price currently in sub-wave two. If this count is accurate, a breakout from the channel could lead to a substantial increase, with a potential target for sub-wave three’s local top at $0.0000014.
Future Outlook and Potential Scenarios: The future of SHIB’s price hinges on its ability to either break out from the channel or face rejection. In the event of a breakout, SHIB could experience a 47% increase to the next resistance level at $0.000014. Conversely, a rejection might lead to an 18% decrease, with the support trend line at $0.0000080 providing a key level to monitor.
As Shiba Inu enthusiasts eagerly watch for further developments, the coin’s ability to navigate these critical levels will play a pivotal role in shaping its short-term trajectory in the highly dynamic cryptocurrency market.
