SHIB Breaks Downtrend and Shows Potential for Surge
Popular meme token SHIB has recently broken out of a downtrend that has been ongoing since December 2023. The current price action suggests that SHIB may experience a consistent surge in the coming months. Analysis of the crypto’s trend reveals the formation of lower highs since reaching $0.00001195 on December 17th, which was exacerbated by a period of consolidation in the overall crypto market.
However, it appears that the current inflow of funds into various cryptocurrencies has also flowed into SHIB, leading to a breakout above its two-month downtrend. As a result, technical analysis and previous performance indicate that SHIB could see a continued surge of between 50% and 70% in the next few months.
Historical Data Highlights Gains After Breakouts
By examining SHIB’s price movement throughout 2023 on a daily candlestick timeframe, a recurring pattern becomes apparent. Typically, the token experiences downtrends lasting for several months before entering an uptrend in the following months. Each downtrend cycle is characterized by lower highs.
In the last occurrence of this pattern, SHIB went through a downtrend from August to October before experiencing a 64% increase that lasted until December. Since then, the crypto has been stuck in a downtrend with lower highs and a consistent low around $0.0000085, indicating waning bearish momentum. The recent breakout was brought to attention by crypto analyst Crypto Rand on social media platform X.
$SHIB looking amazing here after the bullish breakout: pic.twitter.com/NpaKJCYdKG
— Crypto Rand (@crypto_rand) February 9, 2024
While past results do not guarantee future performance, the recent breakout and shift in momentum suggest that SHIB may be poised for another strong rally, especially considering the broader resurgence driven by Bitcoin’s recovery.
What’s Next for SHIB – How High Can It Go?
SHIB is known for its resilience and growth potential, particularly as community members aim to provide more utility for the cryptocurrency and elevate it from memecoin status. The burning of SHIB by community members has increased amidst the ongoing price gain and has seen a 4098% increase in the past 24 hours.
If SHIB rallies by 60% to 70% from its current levels, it would reach $0.0000120, surpassing its December 2023 high. This is entirely possible given SHIB’s history of exponential growth. However, reaching this price point would require a combination of factors, including sustained upward momentum in the broader crypto market.
Currently, SHIB is trading at $0.000009506. Although it is still down by 5.74% in the past 30 days, the recent breakout has continued, resulting in a 5.31% increase in the past seven days. BONE, another cryptocurrency in the Shiba Inu ecosystem, has also experienced price gains of 15% within the same timeframe.
Featured image from Freepik, chart from TradingView
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