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Shiba Inu's 2025 Breakout: Can SHIB Defy Bearish Patterns?

Coin WorldSunday, Jan 26, 2025 3:13 am ET

1min read

Shiba Inu Price Analysis: Can SHIB Break Out of Its Current Range in 2025?

The Shiba Inu (SHIB) token, a popular meme coin, has experienced a significant price decline in recent months, with its value dropping by approximately 40% from its peak in December 2021. Despite the recent downturn, some investors are still optimistic about the coin's long-term prospects. This article explores the technical analysis and factors influencing the SHIB price, as well as the potential for a breakout in the coming years.

Technical Analysis: Bearish Patterns and Support Levels

The daily chart of SHIB shows a clear downtrend, with the price retreating from its peak at $0.00003340 to the psychological support level at $0.000020. Technical indicators suggest that the coin may have more downside potential. The SHIB token has formed a head-and-shoulders pattern, which is typically associated with further price declines in the longer term. Additionally, the coin is approaching a death cross pattern, where the 50-day and 200-day Weighted Moving Averages (WMAs) cross each other, indicating a potential shift in market sentiment from bullish to bearish.

The SHIB price has also formed a double-top chart pattern at $0.00002490, another bearish signal. Furthermore, the price has moved to the closely watched 61.8% Fibonacci Retracement level, suggesting a strong bearish breakdown could occur in the coming weeks. If this happens, the next support level to watch would be $0.00001850, the coin's lowest swing on December 20, 2021. A drop below this level could point to further downside, potentially to the 78.6% Fibonacci Retracement level at $0.00001568, representing a 23% decline from the current price.

Factors Contributing to SHIB's Price Decline

There are two primary reasons for the Shiba Inu price crash in recent months. First, investors have rotated their funds to newer and more exciting meme coins, such as the Official Trump and Melania meme coins, which surged

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