Shiba Inu is showing signs of recovery after a recent correction, with analysts predicting the potential for a momentous price rally anytime soon.
According to analyst “Real CryptoRoy” on TradingView, SHIB has likely reached a local bottom, positioning itself for a bullish move in the coming weeks.
Shiba Inu Correction Phase May Be Over as Recovery Signs Emerge
After recently reclaiming an eight-month high of $0.00003330 in December 2024, SHIB entered a correction phase. Its price dropped by approximately 44%, reaching $0.0000186, followed by a rebound to the $0.00002 region.
For several weeks, Shiba Inu maintained a tight trading range around $0.00002, struggling to establish strong upward momentum. While Shiba Inu briefly recovered to $0.000024 in the first week of January, it dipped again to below $0.00002.
While these price fluctuations were challenging for holders who bought at the top, they presented an attractive entry point for mid-term investors looking to capitalize on Shiba Inu’s potential rebound.
CryptoRoy acknowledged this perspective in his commentary. He pointed out that the price action on January 13, when Bitcoin dipped to $89K, was particularly significant. Despite Bitcoin creating a new yearly low under $90K, SHIB did not dip below its previous low.
For context, Shiba Inu dipped to $0.00001978 on this day but closed above $0.000021. According to CryptoRoy, this “higher low” indicates strength in Shiba Inu’s momentum.
He also noted that the daily close staying above key support levels suggests the correction may be nearing its end. Specifically, the analyst emphasized that these positive signals point to the possibility of an imminent upward movement.
Key Levels to Watch for SHIB Bullish Momentum
Accordingly, CryptoRoy identified $0.000025 as a crucial resistance level for SHIB in the short term. If SHIB can break above this threshold and maintain its momentum, it could open the door for a retest of recent highs around $0.000033.
Furthermore, CryptoRoy suggested that a breakout past this resistance with strong volume could trigger more significant rallies to new highs.
However, CryptoRoy cautioned that the broader crypto market, led by Bitcoin, remains a key factor in SHIB’s performance. Since Bitcoin’s price action often influences altcoins, he advises traders to closely monitor BTC and its dominance (BTC.D) to gauge market shifts.
Indeed, the crypto market has seen improved sentiment with Bitcoin’s recent movement. Bitcoin reclaimed the $100K mark for the second time in 2025 yesterday. This bullish sentiment has spilled over to Shiba Inu, which traded at a fresh weekly high of $0.00002282 today.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
