Shiba Inu (SHIB) Targets Bullish Breakout Amid Major UAE Partnership and Strong Technical Rebound

Shiba Inu Announces Major Partnership 

Shiba Inu has announced a significant partnership with the United Arab Emirates’ Ministry of Energy and Infrastructure (MoEI). This collaboration aims to integrate blockchain technology at a federal level, marking a pioneering move in government adoption of Web3 solutions. His Excellency Eng Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at MoEI, emphasized the goal of setting a global benchmark for innovation and delivering transformative solutions for citizens and the broader community. 

Following this announcement, Shiba Inu’s burn rate surged by over 500%, with approximately 18.7 million SHIB tokens removed from circulation. Additionally, SHIB’s price increased by 8%, reaching around $0.0000164, and its market capitalization surpassed $9.5 billion, re-entering the top 20 cryptocurrencies. 

These developments, including the partnership with the UAE and the progress of Shibarium, Shiba Inu’s layer-2 blockchain solution, are contributing to increased optimism within the SHIB community.

Shiba Inu (SHIB) has recently exhibited dynamic price movements, navigating critical support and resistance levels. Analyzing the 4-hour and 1-hour charts provides insights into SHIB’s short-term and mid-term trajectories.

SHIB Price Analysis

The 4-hour chart reveals SHIB’s significant downtrend correction following an impulsive rally, forming a clear ABC corrective pattern. The price found robust support on Feb. 3, within the green highlighted zone around the 0.786 Fibonacci retracement level (0.00001260-0.00001550). The completion of wave (C) aligns with a Relative Strength Index (RSI) bullish divergence, hinting at a potential reversal.

Prior to this correction, SHIB exhibited a five-wave impulsive structure, peaking near $0.00003308. The corrective wave (C) appears to have exhausted sellers, with the RSI rebounding from oversold territory (circled in orange), signaling renewed bullish momentum. Additionally, the price has reclaimed territory above a key ascending trendline, though it faces resistance around 0.00002047 (0.618 Fibonacci level).

If SHIB sustains above the 0.786 retracement, we could see continued consolidation before an impulsive recovery. The RSI’s movement towards neutral levels further supports the hypothesis of an emerging bullish trend, although volume confirmation is required for validation.

This consolidation phase could create a strong base for potential bullish breakouts if supported by increasing trading volume.

SHIB Price Prediction

The 1-hour chart illustrates SHIB’s ongoing recovery after the complete ABC corrective phase, with an impulsive five-wave formation seemingly underway.  Wave (i) reached the 0.786 level ($0.0001704) on Feb. 3, and Wave (ii) completed a slight correction to 0.0001525 on Feb. 4, and is now progressing through wave (iii), often the strongest wave in an Elliott sequence.

Wave (iii) targets the region near 0.00002047, aligning with the 0.618 Fibonacci retracement. A minor pullback in wave (iv) could retest support around 0.00001900 before wave (v) pushes higher, potentially breaching the previous resistance near 0.00002288 (0.5 Fibonacci level).

After the completion of wave (v), a corrective ABC pattern may unfold, with potential retracements towards the 0.00001800-0.00001946 level. If SHIB maintains bullish momentum post-correction, the next impulsive leg could extend toward the 0.00002826 level (0.236 Fibonacci retracement), contingent on broader market conditions.

Key Levels to Watch

• Immediate Resistance: 0.00002047 (0.618 Fibonacci retracement)
• Key Support: 0.00001600 (0.786 Fibonacci retracement)
• Critical Support: 0.00001400 (lower bound of support zone)
• Short-Term Target for Wave (v): Above 0.00002288 if bullish momentum continues
• Invalidation Zone: Below 0.00001400, signaling potential further downside