Shiba Inu (SHIB) is showing signs of a bullish reversal after an extended decline, with the latest setup pointing to a possible 20% to 30% short-term recovery if momentum holds and broader market conditions stop deteriorating.
According to the source material, a notable bullish candlestick pattern has appeared on SHIB’s daily chart. The move followed a sharp drop that was met by strong buying interest near local lows. Sellers failed to extend control, and buyers pushed price back up. That kind of response often signals that demand is starting to overtake supply, opening the door to a near-term reversal.
Daily chart pattern puts resistance levels back in focus
SHIB has also held up better than many larger crypto assets during the recent market pullback. While Bitcoin and other major tokens saw heavier selling, SHIB avoided the kind of extreme breakdown that hit other parts of the market. That relative stability has strengthened the bullish case around the token.
Traders are now watching nearby resistance zones, especially the moving averages that have capped SHIB’s upside over recent weeks. If price clears those levels, the report says the token could be positioned for a 20% to 30% bounce, assuming the wider market stabilizes instead of sliding lower again.
Wedge breakout adds to the reversal case
The article also points to a breakout from a tightening wedge, a chart structure often linked to reversal setups once buying pressure begins to outweigh selling. In this case, the pattern suggests that SHIB’s recent weakness may have exhausted itself. False breakdowns of this kind can trigger a sharper rebound, especially if short positions are closed and late sellers are caught on the wrong side of the move.
One of the stronger signals in the report is SHIB’s relative performance against Bitcoin during recent turbulence. Bitcoin broke below key support areas, while SHIB’s price structure remained comparatively stable. That divergence suggests downside pressure in SHIB may be fading. If the market settles in the coming days, the token may have room to continue higher.