Shiba Inu (SHIB) is gaining attention in the cryptocurrency space, with analyst Michael predicting a significant price movement that could see it eliminate another leading zero. This optimistic outlook is grounded in a complex analysis based on Elliott Wave theory, suggesting the cryptocurrency is poised for a breakout.
In a recent update shared on social media platform X, Michael outlined his expectations for Shiba Inu’s price trajectory. He believes that the current market movement signals the beginning of a bullish wave, which could propel SHIB to new heights.
According to Michael’s analysis, Shiba Inu is currently in the midst of a five-wave impulse structure, a key concept in Elliott Wave theory. The initial wave, referred to as Wave 1, saw SHIB peak at $0.000016117 on August 24. Following this peak, the cryptocurrency faced a significant pullback, marking the completion of Wave 2, where prices dipped to around $0.00001246 on September 4.
As per Michael’s charting, SHIB is now entering Wave 3, the most powerful and extended phase in Elliott Wave sequences. This wave is crucial because it often represents the longest and most vigorous upward movement in the price structure. Projections indicate that Wave 3 could potentially drive Shiba Inu’s price toward $0.0002479 or higher.
In addition to the Elliott Wave analysis, Michael highlights significant support and resistance levels that could influence SHIB’s price action. On the upside, the critical resistance level to watch is around $0.00003747, which aligns with a previous high and coincides with the Fibonacci 0.618 retracement level. Successfully breaking through this barrier would not only validate the bullish projection but also pave the way for Shiba Inu to target $0.0002 in the medium term.
On the downside, data from Into The Block indicates robust support between $0.000014 and $0.000018, where approximately 120,930 addresses collectively hold over 550 trillion SHIB. This strong support zone could provide a safety net for the cryptocurrency if it faces downward pressure.
Michael’s chart analysis also points out a recently confirmed breakout from a falling wedge pattern. This technical formation often suggests a bullish reversal, indicating that Shiba Inu could be starting a new upward trajectory after a period of consolidation.
Further supporting this bullish perspective, both the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) indicators are showing favorable signs. The RSI is currently positioned in a middle range, indicating there’s still potential for price growth before entering overbought territory, consistent with the projected Wave 3.
Meanwhile, the MACD has been crossing into bullish territory, with consistent bullish bars emerging over the past few days. At the time of this report, Shiba Inu was trading at approximately $0.00001866, reflecting a 3.52% decrease for the morning. For SHIB to hit the ambitious target of $0.0002479, it would need to see an impressive appreciation of about 1,228%.
The combination of a solid Elliott Wave structure, favorable technical indicators, and strong support levels positions Shiba Inu for a potentially significant upward movement. While the path to $0.0002 may require overcoming notable resistance, current sentiment and analysis suggest that investors should keep a close eye on SHIB in the coming weeks.
As always, investors should remain cautious and conduct their research, as the volatile nature of cryptocurrencies can lead to sudden changes in market dynamics. With the right conditions, Shiba Inu could indeed make a substantial leap in the near future.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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