SHIB Breaks Out of Descending Channel With 1% 24-Hour Gains

Shiba Inu (SHIB) is showing signs of breaking out of a long-term descending channel that had constrained its price movement since late 2024. At the time of reporting, SHIB was trading at $0.000012, having risen 1% in the past 24 hours. Despite the recent uptick, the token has seen a 7% decline over the past week, with a daily average trading volume of $197 million. Following the breakout, the price has been consolidating in the $0.000011–$0.000012 range, a sign of accumulation and buyer interest at this level [1].

Crypto analyst Jonathan Carter noted that this consolidation zone has become a key support area, with strong volume activity observed around these levels. Carter suggested that if SHIB continues to hold above this range, the next potential price targets could be $0.000014, $0.000018, $0.000021, and eventually $0.000025. On social media, Carter shared a chart indicating that a sustained bounce from the breakout zone could push SHIB toward $0.00001400, $0.00001750, and beyond [1].

Technical indicators also support a potential upward move. The 50-day simple moving average has been reestablished, often a precursor to a bullish continuation after a breakout. The Relative Strength Index has moved into a neutral range, suggesting the market is resetting and preparing for further gains. SHIB KNIGHT, another market analyst, reported a breakout from a descending wedge pattern, a classic bullish reversal. With the current momentum, the next price targets are seen at $0.000014 and $0.000016 [1].

Network data from IntoTheBlock shows that SHIB has maintained a steady holder base of around 1.41 million addresses over the past month, indicating consistent network participation during the consolidation period. The token celebrated its fifth anniversary on August 1, during which it achieved an all-time high market cap exceeding $40 billion. Although the price has since retreated, SHIB remains active on major exchanges, and traders are keeping a close eye on its potential to reach $0.000025 following the recent breakout [1].

Despite the positive signals, analysts have emphasized the need for confirmation. Any movement above key resistance levels should be accompanied by a surge in trading volume to validate the breakout. Without increased volume, the move could be seen as a false signal. Additionally, the broader market environment remains sensitive to macroeconomic developments and regulatory shifts, both of which could influence investor sentiment and price action.

As SHIB continues to trade in a sideways pattern, traders are advised to closely monitor both technical and on-chain developments. A successful breakout could lead to significant upside, but without strong conviction in the form of volume and price action, the risk of a sharp pullback remains. Investors are encouraged to approach the potential move with caution and to remain prepared for both bullish and bearish outcomes.

[1] title: Bulls on the Hunt: SHIB’s Sideways Move May Be Hiding Big Targets, https://coinmarketcap.com/community/articles/6892cfb278a0a67c8267a671/