Shiba Inu (SHIB) has surged 12% recently, rebounding from a significant pullback that saw the price drop 27% from its December 1 peak of $0.000033. This recovery comes amid oversold technical conditions and key support holding at a critical Fibonacci level, sparking renewed interest among traders and crypto enthusiasts. While the broader market remains cautious, SHIB’s price action suggests a potential short-term bounce — or even the foundation for a deeper recovery toward new highs.
This article provides a comprehensive analysis of Shiba Inu’s current price structure, key support and resistance levels, and potential future movements based on Elliott Wave theory and technical indicators.
SHIB Price Structure and Elliott Wave Analysis
The daily chart for SHIB reveals a completed five-wave impulsive rally that concluded near $0.00003283 — a typical pattern in Elliott Wave theory signaling the end of a bullish phase before a corrective move begins.
Following this peak, SHIB entered a corrective phase characterized by a classic ABC correction pattern. Wave (a) of this correction drove the price down to $0.000027, forming the first leg of the pullback. The market then saw a countertrend bounce — wave (b) — which is currently underway.
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This corrective structure is unfolding within a descending channel, a common formation during consolidation periods. The 0.5 Fibonacci retracement level at $0.00002627 has acted as immediate support, while the 1.0 extension of wave (a) targets $0.00002350 as a potential zone for wave (c) to conclude.
If this pattern holds, wave (b) is expected to retrace up to the 0.618 Fibonacci level at $0.00002959 before wave (c) resumes downward. However, a breakout above $0.000031 could invalidate the bearish setup and suggest the start of a new bullish impulse.
Key Fibonacci Levels in Focus
- $0.00002627 (0.5 Fib): Immediate support and pivot zone.
- $0.00002959 (0.618 Fib): Likely resistance for wave (b).
- $0.00002350 (1.0 Fib extension): Strong support target for wave (c).
- $0.00002164 (0.786 Fib): Secondary support if deeper correction occurs.
These levels are critical for traders monitoring entry and exit points, especially as volume and momentum shift.
Technical Indicators: RSI Signals Oversold Conditions
The Relative Strength Index (RSI) on the daily chart dipped into oversold territory, falling below 30 — a strong signal that selling pressure may be exhausted. Historically, such readings in SHIB have preceded short-term reversals or stabilization phases.
After hitting a low of $0.0000244 on December 10, SHIB rebounded 12%, now trading around $0.0000274. This bounce coincides with the RSI beginning to turn upward, suggesting weakening bearish momentum.
While oversold conditions don’t guarantee an immediate rally, they increase the probability of a countertrend move — especially when combined with structural support.
Why Oversold Doesn’t Always Mean “Buy”
It’s important to note that oversold markets can remain oversold during strong downtrends. Traders should avoid reflexive buying solely based on RSI and instead wait for confirmation — such as a break above key resistance or bullish candlestick patterns — before entering long positions.
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SHIB Price Prediction: What’s Next?
The current correction appears to be forming a zigzag ABC pattern:
- Wave (a): Completed drop to $0.000027.
- Wave (b): Ongoing recovery, likely targeting $0.00002959.
- Wave (c): Expected to extend downward toward $0.00002350.
If wave (c) materializes, it could find strong support near $0.00002350, potentially extending to the psychological $0.0000200 level as a final flush before the broader uptrend resumes.
However, any sustained move above $0.000031 would challenge the corrective narrative and could signal that SHIB is resuming its bullish trajectory — possibly pushing toward new yearly highs.
Bullish vs Bearish Scenarios
Bullish Case: A breakout above $0.000031 confirms continuation of the larger uptrend. Next targets could include $0.000035 and beyond.
Bearish Case: Failure to hold $0.00002627 could accelerate losses toward $0.0000235 or lower, especially if broader crypto sentiment weakens.
Market participants should closely monitor price action at key Fibonacci levels and trendline resistance for directional clues.
Key Support and Resistance Levels
Understanding these levels helps traders identify high-probability zones for reversals or breakouts.
Support Zones
- $0.0000270: Low of wave (a), now acting as immediate support.
- $0.00002627: 50% Fibonacci retracement — critical support.
- $0.0000235: 1.618 extension of wave (a) — strong structural support.
- $0.00002164: 78.6% Fib level — secondary support in deeper correction.
- $0.00002164: 78.6% Fib level — secondary support in deeper correction.
- **$evel.
Resistance Zones
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Resistance Zones
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Frequently Asked Questions (FAQ)
Q: Is Shiba Inu likely to rebound further?
A: Yes, the combination of oversold RSI and support at the 5Fib level increases the likelihood of a short-term bounce. However, sustained upside depends on breaking above key resistance at $evel.
Q: What is the next major resistance for SHIB?
A: The most significant near-term resistance is at $evel, followed by $evel and $evel.
**Q: Can SHIB reach new all-time highs in 2evel?
A: It’s possible if market sentiment improves and SHIB breaks above $evel with strong volume, signaling bullish continuation.
Q: What happens if SHIB breaks below $evel?
A: A breakdown could trigger further selling, with next targets around $evel and potentially $evel if bearish momentum accelerates.
Q: How reliable is Elliott Wave analysis for SHIB?
A: Elliott Wave provides a probabilistic framework rather than certainty. It works best when combined with volume, RSI, and price confirmation.
Q: Should I buy SHIB now?
A: Only after confirming bullish momentum — such as a close above $evel or rising volume on up moves. Always use risk management and consult a financial advisor.
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Final Thoughts
Shiba Inu’s recent 12% gain reflects growing optimism after a sharp correction erased 27% of its value. With technical indicators showing oversold conditions and key support holding, the stage is set for either a recovery or a final leg down before the next bullish phase.
Traders should focus on price action around Fibonacci levels, RSI behavior, and volume trends to make informed decisions. While volatility remains high, disciplined risk management and strategic entry points can help navigate this dynamic phase in SHIB’s price journey.
Keywords: Shiba Inu, SHIB price prediction, Elliott Wave SHIB, Fibonacci retracement crypto, oversold RSI crypto, SHIB support resistance, crypto technical analysis