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Shiba Inu Retests Trendline in Push Toward $0.00001

Shiba Inu Retests Trendline in Push Toward $0.00001

Shiba Inu (SHIB) has retested a two-month trendline amid the ongoing market correction as it sustains its elaborate campaign to recover the $0.00001 price territory.

Following the latest resurgence, Bitcoin (BTC) and the rest of the market have recorded a price slump, with the global cryptocurrency market cap losing over $100 billion over the past 24 hours amid a 1.26% decline. SHIB has not hedged against this drop.

While Shiba Inu has collapsed 1.70% in the last 24 hours, its situation is not as dire as other assets such as Solana (SOL), which currently witnesses a 5.33% drop within the same timeframe. However, one interesting trend to note is the uptrend that occurred with SHIB and SOL during the latest market rally.

SHIB’s Downward Trendline

Notably, Shiba Inu had been trading below a multi-month descending trendline that has persisted since the asset collapsed from the high of $0.00001195 on Dec. 17, 2023. SHIB attempted to break above this trendline on Jan. 11, but a roadblock at $0.00001050 foiled this push.

The asset had not pushed to breach the trendline until the recent market-wide campaign. SHIB recently recorded five consecutive days of intraday gains, rising by over 6%. However, it eventually broke above the elusive downward trendline on the third day.

Shiba Inu Retests Trendline in Push Toward $0.00001
SHIB 1D Chart

The last time Shiba Inu witnessed such a downward trendline was when it collapsed from a $0.00001136 high on Aug. 12, 2023. The downtrend persisted until the asset broke out on Oct. 22. Following the breakout, Shiba Inu rallied 73% to the $0.00001195 high on Dec. 17.

With the recent downward trendline breakout, SHIB looks poised to record a similar price rally. However, such a rally depends on the condition of the broader market. After breaking out, Shiba Inu retained its upward trajectory until it clinched a high of $0.00000961.

Shiba Inu Retests Downtrend

Amid resistance faced at this level and a correction in the broader market, SHIB dropped considerably; The asset has now collapsed by 1.70% today. Notably, this collapse has resulted in Shiba Inu retesting the downward trendline. It bears mentioning that Shiba Inu also retested the previous downtrend before its substantial spike.

However, this time, the crypto token needs to hold above the support at the current trendline to record a bullish resurgence when the broader market eventually recovers. Currently trading for $0.00000925, SHIB must fervently defend the $0.00000922 territory.

A drop below this level could lead to the $0.00000892 price territory. Should this occur, Shiba Inu would have some difficulty recovering above $0.00000922, except it witnesses a substantial price spike in the campaign to recover the $0.00001 psychological price territory.