Analyst Eyes Gradual Shiba Inu Breakout: Here’s Why

A popular crypto analyst believes Shiba Inu could be approaching a major technical turning point after spending years trading beneath a key descending resistance trendline.

Sharing daily and weekly Binance SHIB/USDT charts, analyst Eunice Wong argued that Shiba Inu has built a long-term bottoming structure and is now attempting to break above the descending trendline that has capped every major rally since the token reached its all-time high in 2021.

The weekly chart shows that SHIB is approaching the descending resistance that has constrained its price action since it peaked at $0.00008854 in October 2021. Every meaningful recovery attempt over the past few years has failed to reach this level, creating a series of lower highs throughout the prolonged bearish trend.

Currently trading around $0.00000498, SHIB sits near the point where price meets the multi-year trendline. The prolonged consolidation around historical support has strengthened the case for a potential bottom. 

Daily Chart Shows Improving Bullish Momentum

The daily timeframe also points to improving market sentiment.

After bottoming near $0.00000405 in June, SHIB rebounded to $0.00000596 last week before briefly pulling back. Buyers quickly stepped back in, pushing the token toward the same resistance zone highlighted on the weekly chart.

SHIB has recovered roughly 22% from its recent low near $0.00000402, with rising volume accompanying the initial rally, indicating stronger market participation. Even so, the token continues to trade below a key long-term exponential moving average, suggesting additional resistance could emerge even if it clears the descending trendline. 

Rather than forecasting an immediate rally, Wong emphasized that SHIB’s breakout could develop gradually. The token may need additional time to build enough momentum to overcome a resistance level that has remained intact since the 2021 market peak.

Double-Bottom Pattern Hints at Shiba Inu Potential Surge to $0.00000520

Adding to the optimistic outlook, another market analyst, BuddyKing, believes SHIB is forming a potential double-bottom pattern.

According to the analysis, buyers have consistently defended the $0.00000455–$0.00000460 support zone while the token challenges the $0.00000485–$0.00000490 neckline. A confirmed breakout above that resistance could pave the way for a move toward $0.00000520.

Although momentum appears to be gradually shifting in favor of the bulls, BuddyKing stressed that confirmation remains essential before anticipating the next leg higher. 

Meanwhile, SHIB continues to hold onto part of last week’s strong rally, during which it briefly climbed to around $0.000006. It is up 9.87% over the past month, although it has slipped 5.16% over the past week. 

Trading activity has also slumped, with daily volume falling 44.83% to $90.67 million, indicating that traders are waiting for clearer confirmation before committing to the next major move.