shiba inu (SHIB) price is fairly close to the top of its rise, after which the probability of a correction increases.
SHIB price broke out of the 151-day descending resistance line on Jan. 13. The price has increased significantly since then, reaching $0.0000157 on Feb. The upside move also helped the price regain a key resistance area with an average price of $0.0000139. The resistance is formed by a horizontal resistance area and the 0.618 Fib retracement resistance level.
After the breakout, the daily RSI triggered a bearish bias in the overbought zone. Moreover, Shiba Inu price has formed a long upper candle. As a result, it is quite possible that a drop will follow.
SHIB priceWhether the coin falls below the $0.0000139 resistance area will determine the direction of the future price. Staying above the zone will result in a retest of $0.0000180, the August 2022 high. On the other hand, a breakdown from the $0.0000139 area would lead to a drop to $0.0000118.
Shiba Inu Price Approaches Top of Action
The six-hour short-term technical analysis supports the bearish bias, suggesting a drop is likely. This is because SHIB price has completed a five-wave upward move (black). The presence of the symmetrical triangle in the fourth wave gives confidence to this count.
Moreover, the extended fifth wave had the total length of the first and third waves. So a peak may have been reached. Movement over the next 24 hours can help determine if this is true.
A drop to the $0.0000118 support area mentioned earlier would be a retest of the fourth wave zone, which is common in such upward moves.
On the other hand, breaking above the previous high of $0.0000157 will invalidate this bearish prediction. In this case, SHIB price would have the strength to rise towards $0.0000180.
As a result, Shiba Inu price is likely to correct towards $0.0000118. However, if it manages to break above $0.0000157, the current wave will expand and open its way to highs around $0.0000180.