Shiba Inu (SHIB) Breaks Out of Descending Wedge Pattern, Targeting $0.000015

Shiba Inu (CRYPTO: SHIB) is showing signs of strength after completing a technical correction pattern. The token broke out of a descending wedge pattern that had been forming since March 2024. This breakout signals the end of a long-term corrective structure that had been keeping prices suppressed.

According to technical analysis, Shiba Inu formed a large WXYXZ correction within this pattern, which completed on April 7 at $0.00001030. Since then, the price has rallied strongly and is now retesting a critical zone between $0.00001265 and $0.00001516. This range has acted as both resistance and accumulation since March.

Shiba Inu is currently battling to hold above the 0.5 Fibonacci retracement of the current impulse wave at $0.00001257. If this level breaks, it could trigger further downside towards the 0.382 Fib level.

Shiba Inu is also showing signs of strength on shorter timeframes. The token appears to be displaying an Elliott Wave impulse structure on the 4-hour chart, which is currently in its fifth wave. After completing wave (iii) at $0.00001525, the price pulled back to form wave (iv) around $0.00001317. This pullback seems healthy and expected within the broader pattern.

Shiba Inu is now beginning the final wave (v), which could target the 1.618 Fibonacci extension at $0.00001490 or possibly the 2.0 extension at $0.00001570 if momentum picks up. For confirmation of this continuation, traders are watching for a sustained move through $0.00001418. The Relative Strength Index (RSI) has reset from its previous peak and is currently hovering around neutral territory, leaving room for further upward movement without immediately hitting overbought conditions.

On the 4-hour chart, the RSI is trending upward but remains below overbought levels, suggesting that more upside could be possible before a significant correction would be needed.

The bullish outlook will remain valid as long as Shiba Inu stays above $0.00001257 and the structure of higher lows from the March lows continues to hold.

If this scenario plays out, we could see a continuation of the rally towards the next resistance zone, potentially placing a new price target at $0.00001795 by late April.

If the bulls manage to break through this resistance level, we might even see a rally towards the 2.618 Fibonacci extension of the current impulse wave, which is around $0.0003039 by early May. This scenario would depend on the overall market conditions and the actions of the major crypto traders.

However, if the price fails to break above the crucial resistance level of $0.00001418 in the coming sessions, it could trigger another test of the support levels at $0.0000126 and $0.0000128.

The broader crypto market sentiment will also be crucial for SHIB’s price action. With a strong correlation coefficient of 0.82, Shiba Inu is likely to follow the market leader, Bitcoin’s trajectory closely.

As of Monday morning, SHIB tokens are in the spotlight as traders keep an eye on whether momentum, burn mechanics, and ecosystem growth can sustain the current upward pressure on price.