A market analyst believes that the recent downtrend is part of a larger bullish picture for Shiba Inu, following an explosive breakout.
The current Shiba Inu plight mirrors that of the broader cryptocurrency market. The meme coin has given back most of its gains from the previous week, retracing to $0.00001330 at the time of writing.
Nonetheless, optimism remains high among Shiba Inu proponents. They view the setback as temporary, remaining resolute that prices will rebound quickly.
Momentum Shift After Shiba Inu Breakout
Notably, CryptoNuclear agrees with Shiba Inu bulls, sharing the sentiment that the correction is part of a broader bullish picture. His recent TradingView analysis highlights why Shiba Inu is likely to target higher prices in the near term.
For context, the market watcher noted that Shiba Inu recently broke out from a major descending resistance trendline on the daily timeframe after months of suppression. SHIB has been trading below the trendline since its December high of $0.00003343, with an attempt to break out in May failing to materialize.
Finally, Shiba Inu recorded an “explosive breakout” on July 15, drawing momentum from a broader market uptrend. According to CryptoNuclear, this was not a minor breakout but one that marked a macro trend reversal. He noted that this could build bullish momentum fast for Shiba Inu, setting it on course for new highs.
Shiba Inu Target After Resistance Retest
However, Shiba Inu’s price has receded from its high of $0.00001597 on July 21, tilting towards the descending resistance trendline from which it broke out. An accompanying chart suggests this is a retest of the former resistance zone before the next leg up.
Meanwhile, the analyst highlighted the 0.50 Fibonacci level at $0.000013011 and the 0.618 Fibonacci level at $0.000012314 as possible targets for the retracement. After this, he predicts a quick reversal with momentum from the breakout and retest, sparking a price rally.
Remarkably, he has a target for the projected bullish reversal. While the chart shows multiple areas where Shiba Inu might have a brief stop, his ultimate projection is that Shiba Inu will reach $0.0000329. Notably, this is close to its December high of $0.00003342 and would mark a 144% rally from its current price of $0.0000133.
Interestingly, other analysts share a similar target. Maddox Metrics recently noted that Shiba Inu is ready to move, with its next target at $0.0000350. Meanwhile, Tradersboat predicted a rally to $0.0000250 first before any further uptrend.
Moreover, there are far higher targets for Shiba Inu this bull cycle. Ilagodzilla projected a run to $0.000158 and $0.000250, insisting that the current SHIB price is a bargain.
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.
