Shiba Inu Forms Bullish Reversal; Analysts See 20–30% Recovery Ahead
Shiba Inu (SHIB) is showing technical signs of a potential trend reversal after several weeks of decline. Daily price action produced a bullish rejection candle with a long lower wick and a false breakdown from a narrowing wedge, indicating buyers stepped in near local lows and absorbed selling pressure. SHIB has also shown relative strength versus Bitcoin during recent market turbulence, suggesting downside may be limited and accumulation could be occurring. Short-term moving averages are capping upside and must be reclaimed, with analysts estimating a 20–30% recovery is plausible if buyers clear those moving averages and volume confirms the move. Traders should watch buying volume on rebounds, moving-average resistance levels, and broader market sentiment—weak volume would suggest a low-conviction bounce, while strong volume would validate a more sustainable rally.
Bullish
The combined reports point to a short-term bullish setup for SHIB. Key bullish signals: a daily bullish rejection candle, a false breakdown from a tightening wedge, and relative strength versus Bitcoin — all suggest downside exhaustion and the potential for a relief rally. The primary catalysts for a sustained move are reclaiming short-term moving averages and confirmation via increased buying volume. If those conditions are met, a 20–30% recovery is a realistic near-term target. However, the bullish case is conditional: weak volume, renewed selling pressure, or a broader crypto market decline could negate the setup and produce only a transient bounce. For traders, this implies a higher-probability short-term long bias while using moving averages and volume as entry/validation signals, and tight risk management in case macro volatility returns.