Shiba Inu (SHIB), a prominent token in the digital asset space, has surpassed a critical long-term resistance level, a technical development that has analysts forecasting a potential trend reversal and significant price gains. The move has reignited interest in the meme coin, which has been under bearish pressure for months.
According to analysis from Javon Marks, this breakout from a descending trendline could be the catalyst for a substantial rally. Marks has set a price target of $0,000081, which would represent more than a 500% increase from its recent trading price of approximately $0,000013.
Source: Javon Marks
The Anatomy of a Bullish Signal
For months, SHIB’s price has been constrained by a descending trendline, a technical barrier formed by connecting a series of lower price peaks. Breaking above this line is often interpreted by traders as a signal that selling pressure is waning and buyers are regaining control. The former resistance level is now viewed as a potential new support floor.
This optimistic outlook is further supported by two key factors:
• High Trading Volume: The breakout period saw a significant surge in activity, with over 75 billion SHIB tokens changing hands. This high volume suggests strong market participation and conviction behind the move, lending credibility to the breakout.
• Hidden Bullish Divergence: Analysts have also pointed to a “hidden bullish divergence” on the charts. This technical pattern occurs when an asset’s price forms a higher low, while a momentum indicator simultaneously forms a lower low. It often suggests that the underlying trend remains strong and that the recent dip was a buying opportunity before the next move up.
Context: From Historic Highs to Consolidation
SHIB’s current technical posture is particularly noteworthy given its volatile history. After its meteoric rise to an all-time high in late 2021, the token entered a prolonged correction, losing over 90% of its value and testing the patience of its investors.
This extended period of consolidation and declining prices is what makes the recent trendline break significant. For market participants, it represents the first major sign of a potential shift away from the long-term downtrend that followed its historic peak. While the crypto market remains inherently speculative, the combination of a confirmed breakout, robust volume, and bullish underlying indicators has firmly placed Shiba Inu back on the watchlist for traders and investors.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
