- SHIB broke the counter trendline, showing early strength after months of downward pressure.
- The next target is the upper descending channel, critical for trend reversal.
- Clearing resistance could trigger a 50% rally, but support levels must hold.
Shiba Inu is showing signs of life after months of sideways and downward pressure. Traders are noticing a clear breakout from a short-term counter trendline, signaling early momentum. The price action hints that buyers may be stepping in after a prolonged period of selling. If SHIB can maintain this momentum and overcome the next major resistance, the altcoin could be positioned for a rally of 50% or more in the near term.
Daily Chart Reveals Key Setup
Looking at the daily chart, SHIB has been trapped in a descending channel since the highs of 2024. Each attempt to rally resulted in a lower high, while pullbacks created lower lows. This structure defined a classic downtrend, with the upper boundary acting as strong resistance for over a year. The recent breakout above the counter trendline, which capped price action since February, shows that sellers may be losing strength.
Currently, SHIB trades near $0.00000631, up 6.23% on the session. The breakout represents the first sign of a potential trend change. Previous highs and lows show the token declined from $0.000034 to $0.00000305. Price action has bounced within the channel, creating a clear visual of resistance and support. Breaking above the counter trendline is the first step, but the larger challenge remains the main channel’s upper resistance.
SHIB’s Volume trends suggest more traders are joining the market. A breakout followed by consistent buying could provide the fuel needed to challenge higher levels. The structure shows the upper trendline as the next critical target. Overcoming this barrier would mark a breakout from a multi-year channel that previously contained price action. Analysts note that such a move could trigger a 50% plus rally, aiming initially for $0.000009 to $0.00001050.
Next Steps for SHIB
Traders now watch whether SHIB can sustain momentum at key levels. The breakout above the counter trendline signals early strength, but clearing the upper channel resistance will define the trend. Support lies at the recent lows of $0.00000550 and February’s $0.00000470. Maintaining above the counter trendline is essential to keep the bullish setup intact.
If the upper trendline breaks, the altcoin could see a meaningful shift in market dynamics. A sustained rally would open the door for higher resistance levels and a potential 50% upside. However, failure to clear resistance may lead to consolidation or a pullback. SHIB stands at a critical juncture where traders are testing the resolve of both buyers and sellers.
Shiba Inu broke a counter trendline, showing early strength. Clearing the upper descending channel could trigger a 50% rally, while holding support remains crucial for sustained momentum.The coming sessions will reveal if the momentum can hold and fuel a larger trend reversal.
