Shiba Inu Breaks Downtrend After 728 Days Amid $0.000008 Support: Here are Next Targets

Shiba Inu (SHIB) targets $0.00001, having breached a multi-year downtrend it has traded under for 728 days amid the robust support at the $0.000008 psychological territory.

Shiba Inu’s ability to retain the support above $0.000008 demonstrates its resilience against the bears, as the market prepares for the next bull run. The recently-breached downtrend began forming in the last week of November 2021, as SHIB retraced from the $0.00008845 ATH in October 2021.

Shiba Inu Trades Below Downtrend

From November 2021, SHIB has relinquished several psychological support levels, including $0.00004, $0.00003, $0.00002 and $0.00001. With the asset having lost the pivotal $0.000009 threshold, the bulls have battled to recoup some of the lost values over the past two years.

However, the outcome of the face-off between the bulls and the bears has not been favorable to SHIB this year. SHIB managed to reclaim $0.000015 in early February, but a resulting retracement saw the asset collapse to a discouraging low of $0.00000543 in June.

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Although Shiba Inu summarily recovered from this drop, the discouraging price movements since November 2021 has contributed to the formation of the downward trendline. Until this month, SHIB had not even attempted to break the trendline.

The first attempt at breaching the downtrend came up earlier this month, after 728 days, when SHIB rallied to $0.00000965. Shiba Inu broke above the trendline, but failed to register a weekly close above it. The asset made another attempt in the subsequent week, but a 2.80% price decline that week foiled this effort.

Despite SHIB currently trading above the trendline, its position remains weak. The asset has faced consecutive weekly losses over the last two weeks, looking to retest the support at the trendline. Remarkably enough, SHIB has held well above the $0.000008 support, hedging against a drop back below the trendline.

SHIB’s Next Targets

At its current position, Shiba Inu has a series of resistance and support points looking to defend against a measured move to either direction. Should SHIB retest the trendline and gain upward momentum, its first pivotal resistance would come up at $0.00000888, currently at Fib. 0.236.

A break above this level would bring the last roadblock below $0.00001 into play. This roadblock is currently at $0.00000958. Breaching this level would solidify Shiba Inu’s path to the $0.00001 level, with the bears mounting the next stern resistance point at $0.00001027. Positive sentiments in the broader market could assist SHIB.

As the bulls aim to push for $0.00001, it is important that they do not slip and lose the $0.000008 support. The $0.00000801 point at Fibonacci 0.236 is a very important line of defense. Breaching this level could bring SHIB back into the downtrend, resulting in increased selling pressure and further declines.

Shiba Inu currently changes hands at $0.00000822 at the reporting time, down 0.84% this week. Amid the robust support above $0.000008, SHIB is witnessing a massive upswing in trade volume, up 137% to $305.9 million over the past 24 hours.