By Victor Swaezy 
The price of Shiba Inu has flashed a notable technical signal after enduring months of sustained selling pressure. The token has declined approximately 81.4% from its December 2024 peak of $0.00003343 and is now trading near $0.00000617.
Recent price action shows SHIB hovering close to a critical breakout zone, where the next reaction could determine whether the asset is entering a recovery phase or remains vulnerable to further downside.
Break Above Lower High Shifts Market Structure
Over the past several months, SHIB mirrored the broader crypto market downturn by forming a clear pattern of lower highs and lower lows, confirming a persistent bearish trend. In early February, the token fell to a local low of $0.00000507 before rebounding to $0.00000648 on February 7, marking another lower high within the downtrend.
According to a market analysis published on TradingView by analyst SwallowAcademy, the structure changed on February 14. Instead of creating another lower low, SHIB moved higher and broke above the $0.00000648 level. The price then extended to $0.00000725, confirming a market structure break on the SHIB/USDT four-hour chart.
Analysts note that a move above the most recent lower high often signals a potential shift in trend direction, particularly if supported by sustained buying momentum.
Retest Phase Seen as Critical Confirmation
Following the breakout, SHIB retraced back toward the former resistance level, entering what analysts describe as a retest or accumulation phase. The token is currently consolidating around this area, and holding above the breakout zone is considered essential for confirming a bullish transition.
The analyst identified a potential entry region near $0.00000662 if support holds. If bullish momentum develops, projected upside targets include $0.0000079, $0.0000081, $0.0000083, and $0.0000085. From current levels, these represent potential gains ranging from roughly 27% to nearly 37%.
Downside Risk Remains if Support Fails
Despite the positive technical signal, analysts caution that the recovery scenario depends entirely on SHIB maintaining its position above the breakout level. A failure to hold this zone would invalidate the structure break, potentially leading to the formation of another lower high and a continuation of the broader downtrend.
At present, SHIB is trading slightly below the key threshold, making the next few candlesticks crucial. Market observers say short-term price behavior around this level will determine whether the token confirms a trend reversal or resumes its bearish trajectory.
Market Watches for Momentum Follow-Through
After a prolonged period of weakness, the recent structure shift has drawn attention from traders looking for early signs of a trend change. However, analysts emphasize that confirmation will require sustained momentum and continued defense of the newly established support zone.
For now, Shiba Inu remains at a technical crossroads, with the coming sessions likely to define whether the token’s recent breakout marks the beginning of a broader recovery or a temporary pause within a longer-term decline.