- Shiba Inu coinโs price likely found its foot around the 0.236 Fibonacci level.
- Technical analysts are expecting an โexplosiveโ third wave soon.
- Mixed on-chain signals hint at large holders still reducing their SHIB holdings.
A popular technical analyst on X is measuring the chances of Shiba Inu (SHIB) breaching its all-time high during the next bull run. Charting Guy on X has applied a fractal-based trading instrument, the Elliott Wave, to back up these claims, zooming out into the weekly candles.
SHIB Price Is Awaiting The Explosive Third Wave
The Elliott Wave theory establishes a pattern of northbound impulse and southbound corrective waves in cryptocurrency. Every set of these waves is within another wave set that adheres to the same pattern, just like the fractal patterns in nature.
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In Shiba Inu’s case, the token is heading towards the third Elliott Wave. This position applies to both SHIB and DOGE, as both have almost fully retracted their March 2024 gains.
โNow, we are loading up for the explosive wave 3 that should take out ATHs on both of these coins,โ reveals Charting Guy to his broad audience of 14K followers on X. If SHIB is indeed setting the stage for a breakout on the third wave, this could send its price above the current all-time high of $0.00008616, set nearly three years ago.
Do Other On-Chain Metrics Support the Theory?
The Fibonacci retracement tool is used to understand the implications of the Elliott Wave theory. DailyCoin has used the Fibonacci retracement levels on the weekly technical charts, only to find that SHIB is clinging to the 23.6% support level.
This solidifies Charting Guyโs theory, which asserted that SHIB’s price established strong support around $0.000013. Suppose SHIB keeps on this path. In that case, the next confluent resistance level underlies the territory between $0.00001777 and $0.00001900, which could materialize into stronger corrective waves before continuing northward.
Besides, the validation of this theory highly depends on the market momentum. And so, the recent on-chain data suggests that Shiba Inuโs bulls havenโt regained the steering wheel yet. With a negative Chaikin Money Flow (CMF) of -0.18, Shiba Inuโs money flows still point to large holder distribution rather than SHIB accumulation.
On the Flipside
- Technical analysis does not consider system upgrades, macroeconomic conditions, and the crypto communityโs social presence.
Why This Matters
Timing the momentum assists in making reasonable decisions in the ever-shifting crypto market.
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