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Shiba Inu community analyst SHIB KNIGHT recently identified what he describes as early signs of a clean breakout on the SHIB/USDT chart.
In his latest analysis, the Shiba Inu commentator highlighted a move above a descending resistance line that had capped price action for days. Although SHIB still needs sustained trading above this level to confirm the move, the breakout marks a shift in short-term momentum.
Key Takeaways
- SHIB has broken above a descending resistance line.
- The breakout followed a consolidation phase, suggesting that selling pressure is fading.
- The move invalidates the short-term bearish trend, shifting momentum toward bulls.
- If follow-through holds, higher psychological resistance levels could come into focus.
- Meanwhile, the price of Shiba Inu has dropped by 2% since the analyst’s announcement.
Analyst Anticipates a Clean Breakout for Shiba Inu
According to SHIB KNIGHT, the leading canine-themed token is positioning for a clean breakout that could drive prices higher in the near term. His thesis centers on a visible technical pattern in which SHIB breaks above a descending trendline after an extended period of consolidation.
Specifically, the analysis points to a classic descending triangle formation on Shiba Inu’s daily chart. After surging to the $0.000010 level on January 5, SHIB began forming lower highs, creating a downward-sloping resistance line.
At the time of the chart snapshot, SHIB was trading at $0.00000881, up roughly 5.13% on the day. The significance of the move lies in how the price reacted at the resistance. Once SHIB pushed decisively above the trendline near $0.0000088, buyers absorbed selling pressure from traders who had previously defended that level.
Moreover, the breakout followed a period of price compression, during which volatility narrowed. Historically, such conditions often precede stronger directional moves.
As a result, SHIB KNIGHT characterized the move as a clean breakout rather than a temporary wick. “It is time to send,” he wrote, signaling expectations for higher prices.
Why SHIB Must Maintain This Breakout to Fuel a Rally
By reclaiming the $0.0000088–$0.0000090 zone, an area where prior rallies stalled, SHIB has re-entered a critical technical region. If the token can maintain support above this range, short-term traders may re-enter, potentially reinforcing bullish momentum and opening the door to further upside.
However, breakouts do not guarantee sustained rallies. While SHIB KNIGHT’s analysis suggests upside potential, Shiba Inu may still face pullbacks, as previous breakouts from descending triangle patterns have sometimes led to retracements.
Indeed, SHIB has slipped from the $0.00000881 level shown in the snapshot to approximately $0.000008596, reflecting a modest 2.42% pullback.