Shiba Inu Forms Unprecedented Bullish Structure, Full-Fledged Rally Expected by Late February

▲ Shiba Inu (SHIB) / ChatGPT-generated image

Shiba Inu (SHIB) has reached a critical inflection point as it completes a prolonged period of consolidation and attempts to form a sustainable upward structure. Market analysts suggest that SHIB is breaking through key technical resistance levels and preparing for a full-scale recovery rally.

According to U.Today, Shiba Inu has rebounded დაახლოებით 17% from its recent lows, successfully halting its downtrend. The most crucial level in the current price structure is the recovery of the $0.0000067 range. Analysts believe that if SHIB establishes this level as support, it could gain strong upward momentum toward the next resistance at $0.0000099.

Positive signals have emerged from technical indicators such as the Relative Strength Index (RSI). SHIB’s RSI has moved out of oversold territory and is forming a bullish divergence, suggesting that selling pressure has reached exhaustion while dip-buying demand is increasing. The Moving Average Convergence Divergence (MACD) indicator has also crossed above its signal line, supporting the possibility of a short-term bullish reversal.

Fundamental improvements within the ecosystem are also drawing attention. According to Shibburn, SHIB’s native token burn mechanism, the burn rate has surged recently, accelerating the reduction of circulating supply. Additionally, the stabilization of the automated burn system through the Layer 2 network Shibarium is reinforcing SHIB’s position beyond that of a simple meme coin, positioning it as a utility token within its ecosystem.

However, the 50-day exponential moving average at $0.00000723 continues to act as strong resistance. Without a breakout supported by trading volume, SHIB could remain range-bound for the time being, potentially retesting support at $0.00000619. Market participants are closely monitoring changes in open interest along with activity metrics on the Shibarium network.

Currently, Shiba Inu appears to be stabilizing after halting its decline, laying the groundwork for a new upward channel. Analyst Javon Marks has offered an optimistic outlook, suggesting that if SHIB achieves a technical breakout in tandem with Ethereum’s (ETH) rebound, it could potentially stage an explosive rally exceeding 400% in the long term.

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