Price Shiba Inu (SHIB) may be nearing the end of the correction

Shiba Inu (SHIB) price is trying to bounce above multiple support levels. If successful, this can confirm that the fix has been completed.

The SHIB price has fallen since its yearly high of $0.0000157 on Feb. 4. A significant bearish divergence in the daily RSI (green line) preceded the drop, leading to a low of $0.0000107 on March 4.

An important development is the fact that the SHIB token price has broken out of the $0.0000122 support area. Currently, the Shiba Inu price is trying to validate a past long-term downward resistance line as support (green circle).

If it fails, SHIB price could drop to the next support at $0.0000100. However, if it bounces, a retest of the $0.0000122 area may be on the agenda.

SHIB/USDT daily chart. Source: TradingView

Shiba Inu (SHIB) Price Wave Count suggests bottom is close

The technical analysis of the six-hour time frame shows that SHIB price may have completed an ABC correction structure, which began after its yearly high on Feb. 5. If so, SHIB price is in wave C or has already completed the correction.

A ratio of 1:1 for waves A:C would lead to a low of $0.0000099. While not yet reaching this level, the 0.618 Fib retracement support level at $0.0000108 has, raising the possibility that the correction is complete. This is also supported by the slight bullish divergence that has developed in the RSI.

As a result, the most likely price of the Shiba Inu forecast is the completion of the C wave between these two levels, followed by the continuation of the upward movement.

However, a drop below the low wave at $0.0000078 would invalidate this bullish Shiba Inu coin analysis and could trigger a drop to $0.0000050.

Shiba Inu (SHIB) Price Wave Count
Six hour SHIB/USDT chart. Source: TradingView

In conclusion, the most likely SHIB price outlook is to create a bottom close to $0.0000100 followed by an upward move. A drop below $0.0000078 would invalidate this bullish forecast. In that case, the SHIB coin price could fall to $0.0000050.

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