By Victor Swaezy 
Shiba Inu (SHIB) may be approaching a meaningful price recovery after weeks of persistent downside pressure. Recent market behavior suggests the popular memecoin could be setting up for a rebound of up to 30%, as technical indicators begin to point toward a shift in momentum.
Despite continued fragility across the broader cryptocurrency market—particularly following Bitcoin’s sharp pullback—SHIB has avoided the most aggressive phases of selling. This relative stability has positioned the token for a possible short-term rally.
Bullish Candlestick Pattern Attracts Trader Attention
According to technical analysis of SHIB’s daily chart, the token has formed a classic bullish reversal candlestick pattern. The structure is characterized by a long lower wick, signaling that buyers are stepping in aggressively near recent lows.
The latest candle shows a clear rejection of lower prices, suggesting that selling pressure is beginning to fade. Historically, such formations often precede relief rallies or short-term trend reversals, as demand starts to absorb remaining sell orders.
False Breakdown Adds Fuel to Recovery Hopes
SHIB’s recent price action also reflects a breakdown from a narrowing wedge formation, a move that initially appeared bearish. However, buying interest quickly overwhelmed sellers after the breakdown, creating what analysts describe as a false breakdown scenario.
False breakdowns frequently act as catalysts for upward price movements, as late sellers are forced to reassess positions while buyers take advantage of discounted prices. This dynamic has strengthened the case for a near-term rebound.
SHIB Resilience Stands Out Amid Market Weakness
One factor bolstering optimism is SHIB’s relative resilience compared to Bitcoin. While Bitcoin fell below key support levels and triggered broader market anxiety, SHIB managed to maintain a more stable structure.
This behavior suggests that much of the downside pressure may already be priced in. As a result, SHIB appears better positioned than some peers to attempt a recovery if overall market conditions stabilize.
Key Resistance Levels to Determine Next Move
The next major challenge for SHIB lies in reclaiming short-term resistance levels, particularly key moving averages that continue to cap upside momentum. A decisive break above these technical barriers could open the door to a 20%–30% recovery, depending on broader market sentiment.
Investors and traders are now closely watching SHIB’s price action in the coming sessions. While volatility remains elevated, a successful push through resistance could accelerate gains. Conversely, failure to hold current levels may invite renewed selling pressure, making the near-term outlook highly dependent on market follow-through.