Shiba Inu Could Break Out of Descending Trendline, Reaching $0.001, Says Analyst

Shiba Inu could be set for a significant rally, according to Krao, a TradingView analyst. Krao's analysis suggests the cryptocurrency could reach $0.001 within the next few months.

This target would represent a 7,379% increase from its current price level, giving hope to Shiba Inu holders.

Potential Breakout for Shiba Inu

Krao's analysis is based on Shiba Inu's monthly chart, which reveals a multi-month descending trendline. This trendline has held the price down since late 2021, keeping SHIB under selling pressure.

After peaking in October 2021 at an all-time high of $0.00008854, Shiba Inu experienced a massive collapse. Following the crash, Shiba Inu entered a consolidation phase, moving within a narrow price range between $0.000005 and $0.00003.

According to Krao, this period of flat movement could be a sign that the memecoin is preparing for a breakout. The extended low volatility might indicate that Shiba Inu is building momentum for a significant upward move.

Krao expects this breakout to happen between January and February 2025, and the potential price target is the $0.001 psychological level. While this might seem ambitious, Krao's analysis points to key factors that support this bullish outlook.

What do the Charts Reveal?

Krao's chart analysis shows resistance forming along the descending trendline. The Analyst believes that SHIB could break through this resistance, paving the way for a major price rally.

He points out that the coin's volume has become more stable, with the Relative Strength Index (RSI) sitting at a neutral level.

Further, krao identified a descending trendline often associated with breakouts. Krao sees this pattern as a signal of an upcoming reversal, with Shiba Inu moving from its downward trend to a bullish one. The wedge pattern and the neutral RSI make Krao confident in his prediction.

Short-Term Movements in Shiba Inu

While Krao's analysis focuses on Shiba Inu's long-term potential, the coin is also showing interesting short-term movements. On the daily chart, Shiba Inu is forming a smaller symmetrical triangle.

This triangle is a sign of tightening price action, with the coin's price converging after falling from its peak of $0.00008854.

A symmetrical triangle usually signals the market is undecided, with buyers and sellers in a standoff. In this case, neither side has gained control, which makes it difficult to predict the next move.

Symmetrical triangles often break in the direction of the prevailing trend. Given Shiba Inu's recent downtrend, this could suggest further downside pressure in the near term.

However, if buyers push the price through the triangle's upper resistance, SHIB could see a short-term breakout. The coin is currently hovering around a pivot of $0.0000132, a slight 1.35% increase in the past day.

If Shiba Inu breaks above the first resistance level of $0.00001562, it could signal the start of bullish momentum. On the other hand, if the price fails to clear this resistance, SHIB could slide toward the support levels at $0.00001154 or $0.00001028.

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