Shiba Inu Price Shows Loss of Bullish Momentum

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The Shiba Inu (SHIB) price is nearing the top of its increase, after which a correction is expected.

The SHIB price broke out from a 151-day descending resistance line on Jan. 13. The price has increased considerably since, reaching a high of $0.0000157 on Feb. 4. The upward movement also caused the price to reclaim an important resistance area at an average price of $0.0000139. The resistance is created by a horizontal resistance area and the 0.618 Fib retracement resistance level.

After the breakout, the daily RSI generated bearish divergence inside overbought territory. Moreover, the Shiba Inu token price created a long upper wick. As a result, it is possible that a decrease will follow.

Whether the SHIB price falls below the $0.0000139 resistance area could determine the future price’ direction. Staying above the area could lead to a retest of the Aug. 2022 high at $0.0000180. On the other hand, a breakdown from the $0.0000139 area would lead to a drop of $0.0000118.

SHIB/USDT Daily Chart. Source: TradingView

Shiba Inu Price Nears Top of Its Movement

The short-term six-hour technical analysis supports the bearish divergence, indicating that a drop is likely. This is because the SHIB price has completed a five-wave upward movement (black). The presence of the symmetrical triangle in wave four gives credence to this count. 

Moreover, the extended wave five had the exact length of waves one and three combined. Therefore, a top may have been reached. The movement in the next 24 hours could help determine if this is correct.

A fall to the previously outlined $0.0000118 support area would also be a retest of the wave four region, which is common in such upward movements.

On the other hand, an increase above the previous high of $0.0000157 would invalidate this bearish forecast. In that case, the SHIB price could increase toward $0.0000180.

Shiba Inu (SHIB) Wave Count
SHIB/USDT Six-Hour Chart. Source: TradingView

To conclude, the Shiba Inu (SHIB) price is expected to correct toward $0.0000118. If, however, it manages to increase above $0.0000157, the current wave would extend, leading to highs near $0.0000180.

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