Shiba Inu (SHIB) could be on the verge of retesting and potentially breaking above its downtrend resistance, according to prominent analyst Crypto Rand, who has taken an interest in the asset.
Crypto Rand revealed the current situation in a recent analysis on X. The analyst suggested in an earlier analysis that he has focused on Shiba Inu, possibly due to its interesting price movements in recent times.
Notably, SHIB eventually broke below the crucial $0.000009 psychological support threshold on Feb. 4 after weeks of defending it. The crypto asset now trades at $0.00000890, seeking a broader market resurgence for the next push above the $0.000009 level.
Shiba Inu Caught in a Downtrend
Crypto Rand’s initial report on Shiba Inu came up on Jan. 31, when the asset was also battling to hold above $0.000009. Data from the market analyst’s chart revealed a downtrend that has plagued SHIB since December 2023.
Keeping an eye on $SHIB here…what #memecoins are you looking at? pic.twitter.com/kFtCHFxEoC
— Crypto Rand (@crypto_rand) January 31, 2024
Shiba Inu rallied 57% from a low of $0.00000761 on Nov. 21, 2023, to a high of $0.00001195 on Dec. 17, 2023. The crypto token’s rally aligned with broader market trends, as Bitcoin (BTC) pushed the entire crypto market into a pre-bull run uptrend phase.
SHIB’s attempt to clinch $0.000012 for the first time in nine months met fierce opposition then, leading to a massive correction. The broader crypto market also saw declining strength, exacerbating Shiba Inu’s selling pressure. As SHIB retraced its gains, the downtrend formed.
This downtrend has persisted for nearly two months, with all attempts to break above it proving abortive. Amid these struggles, Crypto Rand noted that he has his eyes fixed on the asset. The analyst’s latest report reveals that SHIB has continued to consolidate following the recent breach below $0.000009.
SHIB Looks to Break Downtrend Resistance
Despite this bearish breach, Shiba Inu has held above the main support, as disclosed by Crypto Rand. The chartist stressed that the crypto asset is again looking to record an attempt to breach the resistance at the enduring downward trendline.
Shiba Inu 1D Chart | Crypto Rand
The last time Shiba Inu recorded a similar downtrend, it lasted for two months but ended with a major rally. Amid that downtrend, SHIB found a floor at a low of $0.00000661 on Oct. 19, 2023. When the asset broke above the trendline, it soared 81% to the December 2023 high of $0.00001195.
Analysts expect a similar price jump once the current downtrend is subdued. However, Shiba Inu might need to leverage a broader market resurgence as well as positive ecosystem developments to register this breakout. SHIB is down 0.22% over the past 24 hours.
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