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▲ Shiba Inu (SHIB)/AI Generated Image
Shiba Inu (SHIB) is attempting to break through a long-term downtrend line that has persisted since 2021. Analysts lean towards a gradual breakthrough rather than a sharp rise.
According to crypto media outlet CryptoBasic on August 3 (local time), crypto analyst Eunice Wong analyzed that Shiba Inu has formed a long-term bottom structure. She stated that Shiba Inu is once again approaching the downtrend line that has prevented major rebounds since its all-time high in 2021.
On the weekly chart, Shiba Inu has consistently set lower highs since its all-time high of $0.00008854 recorded in October 2021. Attempts at rebounds over the years have also failed to break past the long-term downtrend line. However, Wong believes that the prolonged sideways movement within the historical support zone has increased the possibility of a bottom formation.
Signs of a recovery in buying interest have also appeared on the daily chart. Shiba Inu bottomed out near $0.00000405 in June and rebounded to $0.00000596 last week. This is approximately a 22% increase compared to the recent low of $0.00000402. While trading volume increased during the initial ascent, it remains below the long-term exponential moving average, indicating that additional resistance persists.
Wong emphasized that since the long-term resistance line has been maintained since 2021, a breakthrough will take time. Another market analyst, BuddyKing, diagnosed that Shiba Inu is forming a double bottom. He suggested the support zone to be between $0.00000455 and $0.00000460. He analyzed that if the neckline formed between $0.00000485 and $0.00000490 is broken, it could rise to $0.00000520.
Shiba Inu has risen 9.87% over the past month but has fallen 5.16% in the last week. Daily trading volume also decreased by 44.83% to $90.67 million. CryptoBasic reported that market participants are observing the situation until a trend reversal is confirmed.
[Key Article Summary]
-Shiba Inu is attempting to break through a long-term downtrend line that has prevented major rebounds since 2021.
-Analysts suggest the possibility of a gradual breakthrough over a long period rather than a sharp rise.
-If the $0.00000490 neckline is surpassed, the double bottom target of $0.00000520 will be in focus.
*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*
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