TL;DR:
- Analysts observe that SHIB’s structure mimics the consolidation phase that preceded Dogecoin’s 8,000% rally.
- The token has successfully defended a critical demand zone, recently breaking a key downward trendline.
- If the technical scenario plays out, Shiba Inu could face growth exceeding 1,000% from its current levels.
Technical analysts suggest that Shiba Inu will repeat Dogecoin’s pattern from 2021, a move that has put the memecoin market on high alert. This comparison arises after detecting a prolonged consolidation phase in support zones that closely resembles DOGE’s previous cycle.
Experts like Guapeva highlight that SHIB maintains a rigorous respect for its historical demand zone, located between $0.0000068 and $0.0000061. Following every major rally, the asset returns to this support point, consolidating a necessary base for a potential move into the green zone.
Technical Analysis: Descending Triangles and Key Resistances
Currently, the token is within a long-term descending triangle formation, a structure that typically precedes significant price breakouts. However, the recent breach of a minor downward trendline within this figure suggests that momentum is starting to favor buyers.
The comparison with the DOGE/BTC pair between 2017 and 2021 is inevitable; back then, the asset tested similar support levels before skyrocketing 8,000%. While it remains uncertain if SHIB will match that magnitude, the chart points to a possible repetition of the accumulation and explosion dynamics.
For these hypotheses to materialize, Shiba Inu must first overcome macroeconomic barriers situated at $0.0000176, a level that has stalled previous advances. Surpassing this obstacle would clear the path to again target the all-time high of $0.0000885 reached in May 2021.
In summary, while the technical data is certainly encouraging, analysts remind us that the crypto market behavior lacks absolute certainties. Investors should closely monitor trading volume to confirm if this cycle will become the sector’s next major parabolic trend.
