Shiba Inu touched a critical lower support trendline, which has historically sparked a strong rebound followed by explosive price action.
This analysis comes from “Akbarkarimzsfeh” at a time when Shiba Inu (SHIB) is in an obvious correctional phase. SHIB’s 11-month price consolidation has persisted, with the token visiting lower prices again today.
For context, SHIB has reclined by over 6% in the past 24 hours, taking cues from the broader crypto market. The second-largest meme coin by market cap now stands at 24th in the cryptocurrency market cap ranking, fueled by its 13% and 30% corrections in the past week and month.
A Structured Pattern of Price Growth
Meanwhile, the analyst’s TradingView commentary has identified a bullish pattern that suggests this dip is only temporary. He highlighted a rocket-like price shift for SHIB whenever it corrects to a crucial support area.
An accompanying chart shows that Shiba Inu has trended within a descending triangle since its market debut. Specifically, it identified a pattern featuring an explosive move after SHIB touches the bottom of the triangle. The pattern played out before the 2021 and early 2024 rally, with SHIB surging to the upper boundary of the structure at each occurrence.
Nonetheless, before this upsurge, SHIB typically forms a compression pattern. The meme coin formed a symmetrical triangle before the October 2021 breakout and an ascending channel before the February 2024 outburst.
Support Rock Solid—Shiba Inu Bounce Imminent
A similar pattern is currently occurring again, as the analysis has identified. Shiba Inu is trending within a smaller descending channel, originating from the May peak price of $0.00001765. The consolidation phase continued until a sharp wick drop to $0.00000678 on the Binance chart on October 10.
This single-candle drop mirrors that seen in previous cycles, but this time within the compression pattern. The analyst believes this could mark the start of an impulsive rally as seen in past occurrences.
Meanwhile, Shiba Inu has to break out from the consolidatory pattern as in previous cycles. The analyst highlighted the breakout point to be at $0.000013373, marking a 48% increase from the current market price of $0.00000902.
A breakout would take SHIB to the upper trendline of the multi-year descending triangle. Furthermore, the chart shows two targets: one at $0.00002754 and the other at $0.00003329. From here, this represents a 205% and 269% rally, respectively, taking the meme coin to prices last seen during the Donald Trump-inspired run in December 2024.
Notably, analysis from GehavianGoals shares a similar price target for Shiba Inu, predicting that the token will fly to $0.0000335.
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.
