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- SHIB’s extended downturn mirrors past phases that preceded strong rallies.
- Analysts see signs of a potential price base forming after heavy selling.
- A confirmed trend shift would require higher highs and renewed momentum.
After months of steady declines, Shiba Inu is back in focus as analysts debate whether the token’s current structure resembles past setups that preceded sharp rallies. The meme coin has logged consecutive monthly losses, dragging its price to multi-year lows and, notably, to its weakest level on the Coinbase exchange. While sentiment remains cautious, some market observers argue that prolonged downturns often plant the seeds for future rebounds.
Historical Patterns Offer a Possible Clue
One of the more widely discussed perspectives comes from analyst MasterAnanda, who shared a recent chart-based study on TradingView. His analysis highlights structural similarities between the present market phase and conditions seen in early 2021.
During that period, SHIB traded sideways for months before suddenly accelerating between September and October. In roughly six weeks, the token surged more than 1,300%, reaching record highs. The rally began shortly after SHIB established a clear price floor — a moment when pessimism peaked and sellers appeared exhausted.
This historical pattern is now being revisited as traders examine whether a comparable base is forming again.
Current Price Action Suggests a Potential Base
Recent data shows SHIB falling to around $0.00000507 in early February, following a prolonged downtrend from its March 2024 high near $0.0000456. Weekly charts during this decline reflected steady distribution, often associated with the final stage of bearish cycles.
According to analysts tracking this structure, extended selling pressure rarely continues indefinitely. Markets tend to stabilize once sellers lose momentum, creating conditions for gradual recovery. If SHIB begins to form higher highs and higher lows, technical sentiment could shift quickly.
Key levels now being watched include resistance zones around $0.0000206, $0.0000303, and $0.0000708. Longer-term projections suggest a possible upside scenario near $0.0001114, though analysts emphasize that such targets remain conditional on market confirmation.
Broader Crypto Market May Support Recovery
Beyond SHIB itself, the wider digital asset market shows stronger participation, deeper liquidity, and more developed infrastructure than in previous cycles. From this perspective, the current downturn may represent consolidation rather than structural weakness.
Also Read: Can Shiba Inu Erase a Zero Again? SHIB’s 2026 Setup Looks Familiar
While uncertainty remains, historical behavior suggests that periods of heavy pressure can eventually give way to renewed momentum. For investors and traders, the coming months may determine whether Shiba Inu is building a foundation — or simply extending its correction.
Shiba Inu’s prolonged slump has dampened sentiment, but analysts argue that similar phases in the past preceded explosive moves. Whether history repeats itself will depend on whether the token can establish a durable base and regain upward momentum. For now, the market appears to be watching closely for early signs of a trend reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
