A prominent technical analyst has captured market attention by declaring that Shiba Inu (SHIB) has decisively broken out of a prolonged three-year downtrend. This development potentially sets the stage for a significant price appreciation, with many experts now eyeing a run toward its all-time high.
Unlike its performance in November, where it lagged behind other major meme coins, Shiba Inu has shown remarkable strength in December. While assets like Dogecoin and BONK were nearing or even setting new peaks last month, SHIB was only breaking six-month highs. This dynamic, however, appears to be shifting.
Breaking a Major Downtrend
In a detailed analysis shared on social media platform X, the analyst known as "The Krypto King" presented a compelling case. The chart analysis indicates that the persistent downtrend that began after SHIB's historic peak in late 2021 is finally concluding. The breakout from this lengthy consolidation phase is seen as a critical technical event.
The analyst projects that this newfound momentum could catalyze a substantial wave of buying. The initial price target suggests a potential surge of at least 178% from recent levels. Such a move would add significant value to SHIB's market capitalization and bring its price tantalizingly close to its all-time high of $0.00008645.
Recent Price Momentum and Market Position
SHIB's price action has been notably volatile but ultimately bullish. On the day the initial analysis was published, the asset dipped to a low of $0.0000267 before staging an impressive 24% intraday rally to $0.000038. Although it subsequently retraced some of those gains, it has firmly re-established itself in the $0.00003 price range.
This resilience has translated into strong weekly performance. At the time of writing, SHIB is boasting weekly gains of approximately 15%, significantly outperforming other leading meme coins such as Dogecoin, PEPE, FLOKI, and BONK, all of which are seeing gains of less than 4% for the same period. This relative strength is fueling optimism among its supporters.
The Catalysts for the Next Major Move
The belief that Shiba Inu is on the cusp of a major upward move is not isolated. Several market commentators are echoing this sentiment, often drawing parallels with the broader crypto market's performance.
One commentator, "JD Updates," specifically linked SHIB's potential breakout to Ethereum's recent success. The argument is that Ethereum's decisive breakthrough of the key $4,000 resistance level has created a bullish tide that could lift many altcoins, with Shiba Inu being a prime beneficiary due to its established community and market presence.
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The Path to a New All-Time High
Market observers are closely watching several key resistance levels to gauge the sustainability of SHIB's breakout. A common viewpoint among analysts is that the journey to a new all-time high will truly commence once SHIB can sustainably break through the stubborn resistance wall at $0.000033. The asset has already faced rejection at this level once in early December.
Another community analyst, SHIB KNIGHT, offers a slightly different yet equally bullish perspective. The analysis suggests SHIB is currently "filling a bullish pattern" in a slow and steady manner, targeting an initial pump of around 29% to reach $0.00004. Achieving this first target is viewed as a stepping stone, potentially unleashing even more ambitious price targets that could finally surpass the legendary all-time high.
$SHIB filling Bullish pattern slowly. Target is above 0.00004
— $SHIB KNIGHT (@army_shiba) December 6, 2024
Frequently Asked Questions
What does "breaking out of a downtrend" mean for Shiba Inu?
It means the price has moved above a long-term pattern of lower highs and lower lows, indicating that selling pressure has subsided and buyers are gaining control. This is a classic technical analysis signal that often precedes a significant price increase.
What is Shiba Inu's all-time high price?
Shiba Inu reached its all-time high of $0.00008645 in October 2021. This record price was achieved during a massive bull run across the entire cryptocurrency market.
What is the main resistance level SHIB needs to break?
Analysts are primarily focused on the $0.000033 level. A consistent and high-volume break above this price point is considered critical for confirming the strength of the current breakout and opening the path toward higher targets.
How does Ethereum's performance affect Shiba Inu?
Ethereum is a leading indicator for the broader altcoin market. When Ethereum performs well and breaks key resistances, it often boosts investor confidence and leads to capital flowing into other crypto assets, including major meme coins like SHIB.
Is this a good time to invest in Shiba Inu?
All investment decisions carry risk and should be based on your own research and risk tolerance. While the technical outlook appears bullish, cryptocurrency markets are inherently volatile. It is essential to understand the risks involved.
Where can I safely trade Shiba Inu?
Shiba Inu is listed on most major cryptocurrency exchanges. When choosing a platform, prioritize those with strong security measures, good liquidity, and a reputable track record. 👉 Explore secure trading platforms
Disclaimer: This content is for informational purposes only and is not intended as financial advice. The views expressed are those of the analysts cited and do not necessarily represent a universal opinion. All investment and trading decisions involve risk; readers should conduct their own thorough research before making any decisions.