Analysts are still favoring a Shiba Inu recovery despite its massive correction, citing historical context as the premise for the sentiment.
Specifically, Digital Asset Research highlighted this possibility in a recent X post. The account insisted that Shiba Inu may be nearing its bottom, identifying a timeline for patient holders to record huge wins should expectations play out.
Shiba Inu Consolidates Just Like in 2020
Notably, Shiba Inu has corrected 20% over the past 30 days and 62% since the start of the year. While this may be a turn-off for many investors, the analysis highlighted that a similar event occurred over five years ago and ended up being bullish for the meme coin.
For perspective, SHIB reached a peak price in August 2020, with subsiding launch momentum sparking a 99% correction. This bearish price action lasted for 120 days, with the token reaching a bottom price in December 2020. What followed was an explosive rise in 2021, reaching a peak of $0.00008854.
Shiba Inu, like most meme coins, has followed the same trajectory. The commentary noted that most of them topped in August and have corrected aggressively since then.
As a result, Digital Asset Research believes it would be wrong to be “grave dancing” on such an opportunity to buy the dip. With similar market conditions emerging after 60 months, he suggested it may be wise not to miss out on what could be on the horizon.
Macro Conditions Look Appealing
Further, the analysis highlighted favorable macro trends. Specifically, the iShares Russell 2000 ETF (IWM) is breaking out, and meme stocks like Kohl’s are surging, providing catalysts for an upside.
Technically, the commentary spotlighted that we are approaching a full year of bearish trends for meme coins. After a broader market rally in December 2024 and early January, Shiba Inu has corrected considerably. He expects this trend to end soon as the 360-degree cycle nears completion.
Additional catalysts for a rally include Bitcoin dominance peaking at multi-year highs, Shiba Inu approaching oversold territory, and a possible Ethereum bottom this month. If these factors align to create a bullish momentum, the analyst expects “some huge winners” for SHIB between February and March 2026.
Remarkably, the projection closely aligns with an ambitious analysis from Meme Whale. The projection sees Shiba Inu rallying to between $0.001 and $0.01 by April 2026, representing a staggering 12,330% and 124,200% rise from the current market price of $0.000008045.
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.
