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The Shiba Inu price has made a decisive move, one which, when confirmed, could mark the start of a recovery phase after prolonged dips.
Indeed, the price of Shiba Inu has retraced considerably over the past few months, mirroring a broader market trend. From its high of $0.00003343 in December 2024, it has corrected 81.4%, reaching lows last seen in several years. Yet, recent price action signals a turnaround could be on the horizon.
Key Points
- The price of Shiba Inu has made a decisive move, one which, when confirmed, could mark the start of a recovery phase after prolonged dips.
- A market structure break has occurred on the $SHIB/$USDT 4-hour chart.
- Shiba Inu has been in a downtrend, following the classic lower-higher and lower-low pattern, until recent positive price action broke the structure.
- On February 14, it broke above its previous lower high of $0.00000648, reaching $0.00000725.
- Following the market structure break, Shiba Inu is now retesting the area, and the outcome of this retest would confirm or invalidate the breakout.
Shiba Inu Breaks Structure
Analyst SwallowAcademy identified a market structure break on the $SHIB/$USDT 4-hour chart in a recent TradingView analysis. For the uninitiated, this involves moving against the predominant market trend, in this case, the last lower high.
Shiba Inu has been in a downtrend, following the classic lower-higher and lower-low pattern. In early February, it reached a new low of $0.00000507, then rebounded to a lower high of $0.00000648 on February 7.
However, something interesting happened. Instead of another lower low after consolidating, $SHIB headed northward, breaking the market structure. On February 14, it broke above its previous lower high of $0.00000648, reaching $0.00000725.
Shiba Inu Structure Retest
Following the market structure break (MSB), the analyst noted that Shiba Inu is now retesting the area. An accompanying chart shows that the token has dropped to the breakout zone and is currently consolidating around it. He called this the long accumulation or retest phase.
A successful retest would confirm the market momentum shift and start a renewed bullish price action. Meanwhile, the analyst identified entry points and four upward targets for the meme coin if it does complete this retest.
The chart shows his entry is around $0.00000662, a price $SHIB will reach only if it witnesses a successful retest. From there, the commentator expects higher prices of $0.0000079, $0.0000081, $0.0000083, and $0.0000085. From the current market price of $0.00000621, this represents rallies of 27%, 30%, 33.6%, and 36.8%, respectively.
Key Caveat to Note
Notably, this rally depends solely on Shiba Inu holding above this breakout zone. Losing this would invalidate the market structure break and could only mean another lower high formation before a bearish continuation.
Currently, $SHIB trades below this zone, and a sustained trend suggests a failed retest. How it reacts around will reflect in the next few candlesticks, which will determine the validity of this pattern.