Shiba Inu Recovery Backed by Analysts Despite Deep Correction

Analysts maintain confidence in a Shiba Inu recovery despite the token’s steep decline over recent months. Their stance rests on historical patterns that suggest the current downturn may mirror earlier stages of major rallies. The broader market environment also shows early signs of improving risk appetite. As a result, analysts argue that patient holders could benefit if conditions align in the coming months.

Historical Patterns Strengthen Recovery Expectations

Digital Asset Research stated in a recent X post that Shiba Inu may be nearing its bottom after a prolonged decline. The firm pointed to SHIB’s 20% drop over the past 30 days and its 62% slide since January as part of a familiar cycle seen five years ago. The analysis recalled that SHIB peaked in August 2020 before losing 99% of its value over 120 days, reaching a low in December that year. It added that the token then delivered an explosive rally in 2021, hitting $0.00008854.

The commentary noted that meme coins have followed a similar trajectory this cycle. Several of them topped in August before recording sharp corrections through the following months. Because of this pattern, the analyst argued that it would be unwise to “grave dance” on the asset while market conditions repeat a 60-month rhythm. He emphasized that such moments often create high-reward opportunities for disciplined investors willing to hold through volatility.

Market Cycles and Technical Signals Support a Rebound

Shiba Inu approaches the end of a full year of bearish activity across meme coins. The analyst explained that SHIB enjoyed a strong market run in December 2024 and early January before its extended correction took hold. He predicted that the downtrend could fade soon as the 360-degree cycle nears completion. The analysis added that this setup resembles the conditions that preceded the 2021 surge.

Technical factors may also help strengthen recovery prospects. The analyst cited Bitcoin dominance reaching multi-year highs, which often precedes rotation into altcoins. He also noted that Shiba Inu trades near oversold territory and that Ethereum may form a bottom this month. These factors, he argued, could combine to spark bullish momentum into early 2026.

Digital Asset Research expects “some huge winners” between February and March 2026 if these signals align. The projection aligns with a bold outlook from Meme Whale, who suggested that Shiba Inu might rally to between $0.001 and $0.01 by April 2026. His range represents potential gains of 12,330% to 124,200% from SHIB’s current price of $0.000007942.

SHIB price chart, Source: CoinMarketCap

Source: https://coinpaper.com/12783/analysts-warn-selling-shib-now-could-be-a-mistake