Shiba Inu Holds Breakout as Analyst Reaffirms $0.000081 Target Despite 15% Weekly Dip

Despite a sharp 15% decline over the past seven days, Shiba Inu (SHIB) is still holding firm above its long-term breakout zone. While short-term sentiment remains shaky, crypto analyst Javon Marks continues to maintain his $0.000081 price target, forecasting a potential rally of over 500% from SHIB’s current level.

At the time of writing, SHIB trades at $0.00001305, reflecting a 3.93% loss over the last 24 hours. This recent drop has reduced the token’s 30-day gain to just 13.57%, yet analysts believe the bigger picture remains intact.

Analyst Reaffirms Bullish Setup Following Trendline Breakout

Javon Marks shared his latest SHIB chart on X, where he highlighted the asset’s successful breakout from a multi-year descending trendline. He originally identified the breakout on July 12, pointing to a trend reversal structure and emphasizing that the $0.000081 target remains valid.

According to his chart, SHIB had been trapped under a curved, long-term resistance line that began near its 2021 all-time high. This downtrend spanned approximately 75 weeks (448 days), slashing SHIB’s value by over 91%. During this prolonged period of lower highs and lower lows, sentiment turned bearish and the community witnessed a macro structural decline. The downtrend bottomed out around $0.00000795, laying the groundwork for a breakout.

SHIB finally broke out of this structure in early 2023, confirming a technical reversal. That breakout was followed by a textbook retest of the former resistance zone, which successfully held as new support. This confirmation solidified the bullish structure.

Momentum Builds Through Hidden Bullish Divergence

In the months following the breakout, SHIB consolidated in a tight range above the breakout zone. Javon’s chart also revealed a hidden bullish divergence between late 2023 and early 2024, typically a signal that momentum is building quietly behind the scenes.

Such divergences often indicate accumulation, as prices move sideways while momentum indicators gradually shift upward. This pattern aligns with SHIB’s current consolidation, suggesting the token could soon resume its upward trajectory if accumulation continues.

Javon Marks marked $0.000081 and $0.00011532 as key upside levels if momentum strengthens in the coming weeks.

Community Sentiment Strengthens with Burn Narrative and Alternate Projections

While Javon remains one of the most vocal supporters of SHIB’s breakout, other analysts have echoed bullish sentiment. For instance, CryptoNuclear interpreted SHIB’s recent dip as a healthy retest of its breakout, with his chart forecasting a move toward $0.0000329.

Similarly, other technical analysts like Maddox Metrics, Tradersboat, and Ilagodzilla have projected more aggressive upside targets, with some aiming as high as $0.000250. These analysts argue that SHIB remains undervalued at its current price, especially given its large community and ongoing deflationary efforts.

Fueling the bullish narrative is the token burn phenomenon, which has become a cornerstone of SHIB’s value proposition. Jaime Rogozinski, the founder of WallStreetBets, recently reignited the conversation around SHIB’s deflationary tokenomics, noting how scarcity-driven hype often leads to explosive price movement.

Rogozinski referenced the 2021 token burn by Vitalik Buterin, where over 410 trillion SHIB tokens were destroyed. That event played a major role in SHIB’s all-time high surge. A similar sentiment resurfaced recently when SHIB’s burn rate jumped 16,855% in just 24 hours, triggered by a Coinbase user destroying over 600 million SHIB tokens in a single transfer.

Final Thoughts: Price Pullback Doesn’t Invalidate Bullish Outlook

While SHIB has dipped 15% in the last week, the long-term chart still tells a different story. The breakout from a multi-year downtrend remains technically intact, and bullish analysts like Javon Marks continue to maintain their price targets. With accumulation signs on the chart, renewed community focus on deflationary mechanisms, and broad analyst consensus pointing higher, SHIB may simply be pausing before its next leg up.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.