Shiba Inu (SHIB) has finally broken a downtrend it has been caught in since last December, with an imminent uptrend potential leading to a surge between 53% and 72%.
Crypto Rand, a notable crypto educator and trader, identified this bullish breakout in one of his latest price analyses. According to the analyst, Shiba Inu is currently “looking amazing” amid the recent bullish resurgence triggered by the Bitcoin (BTC) recovery.
Shiba Inu Breaks Out of Downtrend
Data from an accompanying chart confirms that SHIB had been trading below a downward trendline since it dropped from the December 2023 high. Recall that Shiba Inu rode on the broader market uptrend in Q3 2023 to surge to a high of $0.00001195 on Dec. 17, 2023.
$SHIB looking amazing here after the bullish breakout: pic.twitter.com/NpaKJCYdKG
— Crypto Rand (@crypto_rand) February 9, 2024
However, as the market rally lost steam, SHIB collapsed from this high, forming a downward trendline. The cryptocurrency has been changing hands underneath this downtrend since last December. It has attempted to break out on multiple occasions, but faced intense resistance each time.
The latest breakout attempt came on the back of the growing bullishness across the broader crypto market. Shiba Inu recorded a bullish 2.26% intraday gain on Feb. 7, and complemented its run with an extra 1.66% rise on Feb. 8.
These two consecutive intraday gains set the groundwork for the breakout. The crypto asset solidified the push when it registered a further 1.95% increase yesterday, closing the day at $0.00000939, as it looked to seal its claim above the crucial $0.000009 threshold.
Following this breakout, Shiba Inu would seek to record a bullish run that could push it toward the December 2023 highs in an attempt to reclaim the price point. A look at historical context confirms the crypto asset’s tendency to embark on this bullish journey.
Historical Context Points to 53-72% Gain
Notably, Shiba Inu had recorded similar downtrends over the past year, per data from Crypto Rand’s charts. The first downward trendline formed when the token fell from the $0.00001575 high in February 2023. SHIB traded below this downtrend until June 2023, when it broke out.
Following the breakout, Shiba Inu rallied to 53% to a high of $0.00001136 in August 2023. A drop from this high resulted in the formation of the second downtrend. This second downtrend was broken in October 2023, culminating in a 72.6% surge to the $0.00001195 high last December.
Now that SHIB has broken out of the third downtrend, analysts expects a similar price surge, with expectations ranging from 53% to 72%. Shiba Inu currently trades for $0.00000935. From this level, a 53% rally would lead to $0.00001431, and a 72% surge would result in a $0.00001613 price.
However, the cryptocurrency’s chances of clinching this price territories depend on multiple factors. One such factor is the direction of the broader crypto market, as dictated by Bitcoin. SHIB would also require increased bullish sentiments within its native ecosystem.
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