Recent analyses by renowned crypto experts indicate a significant shift in the trading landscape for Shiba Inu (SHIB). This popular meme coin, once the darling of many investors, has encountered bearish signals that could spell trouble for its immediate future. Analysts warn of a potential 20% decline, which would greatly impact investor sentiment.
Shiba Inu Faces Breaking Point
As discussed in a recent TradingView post, the latest technical analysis showed that Shiba Inu has broken down from a critical triangle pattern. Following a period of consolidation near crucial resistance levels, this development has drawn attention. Analysts believe that a retest around the breakout zone—currently approximately $0.00001396—could occur before a potential decline towards another support level set at $0.00001041.
Key levels to monitor in the coming days include the resistance point at $0.00001396 and the support zone hovering around $0.00001041. In a parallel TradingView analysis, another analyst, identified as Paper Trader, echoed similar observations, indicating that Shiba Inu currently sits within a demand zone close to critical price levels.
To regain momentum, bulls must push Shiba Inu past the demand zone, particularly above $0.00001300. If this threshold is breached, a rally toward $0.00001427 could be on the horizon. An optimistic outlook suggests that further strength could take SHIB to as high as $0.00001700. Conversely, if the demand zone fails, the price could slide down to around $0.00001100.
However, Shiba Inu’s journey this year has been challenging, experiencing a staggering decline of over 38% year-to-date. This downturn has affected its standing in the cryptocurrency hierarchy, where it currently rests at 19th by market capitalization—quite a fall from its previous positions among the top ten following an impressive surge at the end of last year.
Could a Recovery Be on the Horizon?
Contrasting with the bearish outlook, crypto analyst GKTrademanthan has offered a more optimistic perspective, suggesting that SHIB may have already hit its bottom. He draws parallels between the price action of 2024 and the current trends observed. His analysis breaks down the market movements into four distinct stages.
The first stage he identifies is a completed falling wedge pattern, which is seen as bullish. Furthermore, he highlights the completion of the Cup and Handle pattern and W Pattern as stages two and three. His final stage entails the anticipated formation of an inverted Head and Shoulders pattern, expected to pave the way for significant upward momentum. The breakout target is noted to be $0.00002431, potentially representing a striking 90% gain from the present levels.
As of now, Shiba Inu is trading around $0.00001322, experiencing a modest increase of over 3% in the past day, as per CoinMarketCap data.
