Analysis indicates a potential Shiba Inu rebound to new highs may delay amid a possible 30% capitulation to a crucial monthly support.
Market watcher MadWhale has asserted in a TradingView analysis that Shiba Inu’s bearish momentum remains. The pseudonymous analyst stated that while the doggy-themed meme coin has seen some upsides after a steep drop on February 3, it still trades within a descending channel.
For context, Shiba Inu recently rebounded strongly from a multi-month low of $0.00001160 a week ago amid a macroeconomic headwind. The second-largest meme coin by market cap rebounded 37% from the price level to close at $0.00001680 and has trended around the region.
Another 30% Downside?
MadWhale, who lauded the accuracy of his previous predictions, stated that Shiba Inu is still in a bearish phase. As a result, he speculated that the token might see lower prices, specifically towards its higher timeframe support area.
The analyst suggested the prominent meme coin will correct at least 30% from its current valuation to the support at $0.00001123. Meanwhile, he stated that the downtrend may extend beyond the support to lower prices depending on the broader market condition.
Nonetheless, MadWhale speculated two likely scenarios for the downtrend. An accompanying chart shows that Shiba Inu could either resume the uptrend from the current market position or trend to higher prices before the correction.
In the case where Shiba Inu temporarily appreciates, his chart shows it could surge to the tip of the ascending channel before another round of capitulation. Notably, the channel’s tip lies around $0.00001930, marking a 20% upsurge from the current market price.
Analysts’ View on Shiba Inu’s Next Course After Downtrend
Meanwhile, despite the current bearish phase, analysts’ long-term view on Shiba Inu remains bullish. This confidence stems from the asset’s historical ability to rebound from market downsides and bullish momentum around its ecosystem.
For instance, top Bitcoin analyst Crypto ELITES recently shared that Shiba Inu’s technical outlook remains bullish. Citing a classical cup-and-handle pattern, he predicted a 2,860% breakout to $0.0004729.
Another analysis suggests that Shiba Inu would target a substantial uptick to $0.00004170 after completing the downside. Meanwhile, a separate analysis predicted more upside, with an upward trajectory of over 543% to $0.0001397 in view.
In the meantime, SHIB trades at $0.00001604, up 2% in the past 24 hours.
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