Popular meme token SHIB recently broke out of a downtrend that has persisted since December 2023, and current price action points to a consistent surge in the coming months. Analysis of the crypto’s trend indicates the formation of lower highs since reaching $0.00001195 on December 17th, exasperated by a period of consolidation within the entire crypto market.
However, the current inflow across various cryptocurrencies seems to have flowed into SHIB, pushing the crypto into a breakout over the top of its 2-month downtrend. Consequently, technical analysis and previous performance suggests a continued surge between 50% and 70% for the next few months.
Historical Data Shows Gains After Previous Breakouts
Examining the price movement of SHIB throughout 2023 on a daily candlestick timeframe appears to highlight a recurrent pattern. Typically, the token has gone through bouts of downtrends lasting for a few months before going on an uptrend in the months after. Notably, each downtrend cycle saw the formation of lower highs.
The last time this happened, SHIB went on a downtrend from August to October, before going on 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 the $0.0000085 suggesting a tiring momentum from the bears. The recent breakout was brought to light on social media platform X by crypto analyst Crypto Rand.
$SHIB looking amazing here after the bullish breakout: pic.twitter.com/NpaKJCYdKG
— Crypto Rand (@crypto_rand) February 9, 2024
While there’s no guarantee of future performance based on past results, the recent breakout and shift in momentum suggests SHIB could be poised for another strong rally, particularly amid a broader resurgence spurred by Bitcoin’s recovery.
What’s Next For SHIB – How High Can It Go?
SHIB is known for its resilience and potential for growth, particularly as community members look to provide more utility for the cryptocurrency and elevate it from the memecoin status. SHIB burns from community members have also increased amidst the ongoing price gain and is currently on a 4098% increase in the past 24 hours.
If Shiba Inu rallies 60% to 70% from current levels, it would reach $0.0000120, pushing it past its December 2023 high. This is well within the realm of possibility given Shiba Inu’s history of exponential growth. However, the journey to this price point would require the right combination of events, including a consistent upward momentum in the broader crypto market.
At the time of writing, SHIB is trading at $0.000009506. Although still down by 5.74% in the past 30 days, the recent breakout has continued, and the crypto is up by 5.31% in the past seven days. BONE, another crypto in the Shiba Inu ecosystem has made price gains of 15% in the same timeframe.
Featured image from Freepik, chart from TradingView
from Bitcoinist.com https://ift.tt/knHZM0P
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