It appears that Shiba Inu is following a traditional Elliott Wave pattern, which may indicate a well-organized plan for its future actions. According to the widely used technical analysis tool Elliott Wave Theory, markets frequently exhibit a five-wave pattern during significant trends. In these patterns, two corrective waves move against the primary trend direction (2 and 4), while three waves move in the primary trend direction (1, 3 and 5).
If SHIB adheres to this pattern, it may indicate that the asset may undergo a strong rally in the subsequent impulsive wave following a current correction phase. After a strong initial rally, Shiba Inu currently looks to be in the second wave of a correction phase. The third wave is usually the longest and most explosive of the five, and this second wave is usually viewed as a pullback beforehand.
Elliott Wave Theory, which frequently observes that the second wave does not break below the beginning of the first wave, is in good agreement with this correction for SHIB. Support at $0.000020 may be crucial for SHIB since it would strengthen the structure for an impending third wave if it were held above this level.
The third wave may bring about a more significant upward move if SHIB sticks to this Elliott Wave structure. Conventional Elliott Wave forecasts suggest that the third wave may push SHIB toward higher resistance levels, perhaps all the way to the $0.000035 to $0.000040 range. Resuming buying interest and sustained market momentum would be necessary for this rally.
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Although Elliott Wave Theory has been applied effectively in a number of markets, it is not infallible. It is predicated on the idea that patterns and market psychology recur. The mood of investors and general market circumstances will be very important to SHIB. The trajectory of SHIB will ultimately depend on a number of factors, including volume market news and general sentiment regarding cryptocurrencies, even though Elliott Wave Theory can offer a framework.
