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SHIB KNIGHT, a long-standing crypto investor, highlighted a breakout for Shiba Inu but suggested it would need a positive crypto market to sustain.
The analyst raised this sentiment in a recent tweet. According to him, SHIB could resume its price recovery, but he identified the need for cryptocurrencies to align with a broader bullish global market trend.
Key Points
- Shiba Inu is trading within a descending triangle, which began forming after its short-lived rally to a high of $0.00001009 on January 5.
- SHIB KNIGHT highlighted a breakout possibility for Shiba Inu but suggested it would need a positive crypto market to happen.
- He noted that SHIB could resume its price recovery, but he also identified the need for cryptocurrencies to align with broader global market trends.
- SHIB’s 7% rally yesterday to $0.00000912 broke it above the triangle’s upper resistance, but it needs to hold above the triangle’s resistance trendline around $0.00000862 to confirm this.
- For Shiba Inu to thrive, cryptocurrencies like Bitcoin, Ethereum, and XRP with higher market dominance must remain stable.
- Meanwhile, the total crypto market cap rose by over 4% in the past 24 hours to reclaim $3.24 trillion, suggesting momentum.
- This suggests that momentum is slowly creeping back into the crypto space, a condition that could drive Shiba Inu’s sustained breakout.
Analyst Suggests Shiba Inu Breakout from Descending Triangle
SHIB KNIGHT noted that he is closely monitoring a Shiba Inu breakout. An accompanying chart shows the token traded within a descending triangle, which began forming after its short-lived rally to a high of $0.00001009 on January 5.
After consolidating within the triangle, SHIB has broken out. The token’s 7% rally yesterday to $0.00000912 pushed it above the triangle’s upper resistance. Meanwhile, SHIB has retraced to $0.00000882 at the time of writing.
To confirm this breakout, SHIB must hold above the triangle’s resistance trendline, which the chart shows was around $0.00000862.
Why Shiba Inu Needs a Positive Crypto Market
Notably, the global markets, especially the metal category, are buzzing. Silver has climbed to another new all-time high of $91.5, extending its recent positive run of form. Gold also followed suit, hitting a new all-time high of $4,639 early Wednesday.
However, according to SHIB KNIGHT, crypto was not replicating this broader bullish move. While he keeps an eye on the breakout for Shiba Inu, he also seems to be paying attention to how the broader market performs.
But why does this matter for Shiba Inu? As a speculative asset backed majorly by community support, Shiba Inu has minimal to no use cases. As a result, it tends to move in step with the broader crypto market. For Shiba Inu to thrive, cryptocurrencies like Bitcoin, Ethereum, and XRP with higher market dominance must remain stable.
Crypto Market Shows Signs of Life
Meanwhile, the total crypto market cap rose by over 4% in the past 24 hours to reclaim $3.24 trillion, suggesting momentum. Bitcoin, the largest cryptocurrency by market cap, led this rally, rising by over 5% on Tuesday. It increased from around $90,950 to an intraday high above $96,000 before correcting slightly to $94,700 at the time of writing.
Ethereum also grew by 6% to reach $3,322, and XRP rallied nearly 4% to change hands at $2.14. This suggests that momentum is slowly creeping back into the crypto space, a condition that could drive Shiba Inu’s sustained breakout and actualize SHIB KNIGHT’s $0.00001200 target.
Important Caveat
Notably, while the cryptocurrency has shown signs of recovery, there is no guarantee that this momentum will continue. A similar rally occurred earlier in January, but what followed was a period of retracement, during which major assets relinquished their gains.
Moreover, a bullish crypto market still does not guarantee that Shiba Inu will thrive. Conclusively, SHIB KNIGHT’s analysis is not financial advice.