The Shiba Inu price has flashed a decisive technical signal after months of sustained downside pressure. Following an 81.4% correction from its December 2024 high of $0.00003343, SHIB recently broke a key market structure level on the four-hour chart. Analysts say the move could signal the start of a recovery phase. The token now trades at around $0.00000617 near its breakout zone, where the next price reaction will determine whether bullish momentum holds.
Shiba Inu Breaks Bearish Market Structure
Shiba Inu mirrored the broader market downturn over the past few months. The token formed consecutive lower highs and lower lows, confirming a steady downtrend. In early February, SHIB dropped to $0.00000507, marking a new local low. It later rebounded to $0.00000648 on February 7, establishing another lower high within the bearish pattern.
According to TradingView analyst SwallowAcademy, the structure shifted on February 14. Instead of printing another lower low, SHIB moved upward and broke above $0.00000648. The price extended to $0.00000725, confirming a market structure break on the SHIB/USDT four-hour chart.
The analyst explained that a break above the last lower high signals a potential change in trend direction. He noted that such moves often precede renewed bullish price action when supported by sustained momentum. However, he stressed that confirmation requires a successful retest of the breakout zone.
Retest Phase Could Confirm Recovery
After reaching $0.00000725, SHIB retraced toward the breakout level. SwallowAcademy described this phase as a long accumulation or retest stage. Current price action shows consolidation around the former resistance area.
The analyst identified a potential entry point near $0.00000662, provided SHIB holds above the breakout zone. He projected upside targets at $0.0000079, $0.0000081, $0.0000083, and $0.0000085. From the current market price, those levels represent gains of 27%, 30%, 33.6%, and 36.8%, respectively.
However, he cautioned that losing the breakout zone would invalidate the structure break. In that case, SHIB could form another lower high and resume its bearish continuation. At present, the token trades slightly below the critical level. Analysts say the next few candlesticks will determine whether the Shiba Inu price confirms a recovery or extends its decline.
Source: https://coinpaper.com/14762/shiba-inu-price-breaks-key-structure-eyes-recovery
