Shiba Inu is poised for an upswing near its yearly high, as technical analysis indicates a breakout from a bullish price pattern.
In the latest Shiba Inu news, the dog-themed meme coin could target a bullish upthrust to higher prices imminently. However, following a wider market downturn, it must ward off the prevailing bearish momentum around its ecosystem.
For context, Shiba Inu recorded its third consecutive weekly downtrend, but with a mild correction compared to the previous weeks. The leading meme coin closed last week with a 1% drop, failing to sustain an earlier bullish momentum that saw it hit an intra-week high of $0.00002408.
Shiba Inu Breaks Out from Bullish Structure
A recent analysis from Rose Premium indicates that Shiba Inu could regain bullish momentum and rebound from the latest dip. The commentary cited a potential breach above a descending channel in the 1-day timeframe.
The market speculator attached a chart suggesting a possible breakout from the channel, which started forming at the local top at $0.00003343 in early December. With the breakout, Rose Premium shared three price objectives for Shiba Inu, including a short-, intermediate-, and long-term target.
Meanwhile, the analyst expects Shiba Inu to meet resistance at $0.00003236 with the initial uptrend. A breach of the resistance will spur further upsides to the intermediate supply zone at $0.00003870.
Additionally, Rose Premium asserted that the long-term target from the descending triangle breakout is a surge to $0.00004349. However, he stated that the nearly 100% price uptick would actualize if intense bullish momentum captured the market.
Support Levels to Watch
Meanwhile, Rose Premium indicated support levels to watch if Shiba Inu continues the downtrend. He marked the 0.618 Fibonacci level at $0.00002230 as a potential demand zone and the 0.786 extension at $0.00002170 as a stronger support level.
Notably, the support at $0.00002230 has failed to hold, with Shiba Inu falling further downwards. However, the second-largest meme coin by market cap has found solace in the $0.00002170 demand zone.
Moreover, Shiba Inu could bounce from the area if the demand zone continues to cushion against further downtrends. In the meantime, SHIB trades at $0.0002173, up 1.73% in the past 24 hours.
