Shiba Inu Impulsive Rally Favors Even More Upside

8 окт. 2021 г.

Shiba Inu's (SHIB) price rally added more than 200% over the past 7 days. According to the Elliott Wave theory, the current rally has an impulsive price structure which favors even more upside. The cryptocurrency has traded consistently higher within an impulsive move that sent the price to a six-month high of $0.000034.

Elliott Wave Analysis
Based on the Elliott Wave analysis, Shiba Inu is in the process of finishing the third wave of a five-wave sequence. The 4-hour SHIBUSDT chart shows that the cryptocurrency has ended the cycle from the September low in wave I at the $0.0000094 high. The retracement in wave II then ended at the $0.000007 low.

From there, the cryptocurrency has continued to extend higher in what it seems an extended wave III that can be subdivided in an impulsive 5-wave sequence of smaller degrees. The internal subdivisions of wave III can be studied on the 4-hour chart.

According to the Elliott Wave theory, wave III can be considered complete at the current $0.000034 high. Currently, wave IV is probably in progress, and it can unfold in a three-wave pattern lower. However, since the cryptocurrency needs one more swing high to complete the five-wave impulsive sequence, we can expect one more high above $0.000024.

RSI Momentum Readings
While wave III unfolded, the RSI oscillator printed positive momentum readings above the mid-level 50, confirming that we're moving strongly. Furthermore, if the RSI oscillator stays above the mid-level 50 while wave IV is in progress, this further strengthens the bullish case scenario.

Moving forward: on the downside, the key level of support comes at the big round number of $0.00003 followed by $0.000024. On the flip side, the critical resistance remains the previous swing high of $0.000035.