Shiba Inu Eyes Recovery to Pre-Crash Levels After Bullish Pattern Breakout

• DRAGONEAGE_FX spots descending trendline breakout on 4-hour Shiba Inu chart.
• Token targets $0.00001291 recovery level requiring 23% gain from current price.
• 6% pullback brings SHIB to support for potential retest before rally continuation.

A bullish technical pattern has developed on Shiba Inu’s chart with potential to retest price levels seen before the recent market correction. Analyst DRAGONEAGE_FX shared this outlook in TradingView analysis posted October 13.

The commentary identified a Shiba Inu breakout above a descending trendline on the 4-hour timeframe. The meme coin traded above this technical level prior to October 10’s market crash that triggered steep correction to $0.0000067 before quick rebound.

SHIB has now successfully broken through the downward sloping resistance that had capped recent price attempts. This technical development creates conditions for potential upward movement if the breakout holds.

Retest phase precedes next upward leg

The analyst cautioned that a trendline retest could occur before the next rally phase begins. Chart analysis highlights emergence of a new trendline from last week’s lows currently functioning as support.

SHIB has executed this retest with a 6% pullback bringing prices to the support level. The token must regain upward momentum around this area to validate the breakout and pursue higher targets.

Current price action at $0.00001048 positions SHIB at a critical juncture for determining whether bulls can defend support. DRAGONEAGE_FX stated the ongoing retracement offers a favorable buying opportunity for new entries.

The analyst characterized this level as fair entry point in preparation for the next upward movement. Investors without exposure or seeking additional positions could utilize current prices before potential rally continuation.

If Shiba Inu rebounds from support, the next resistance area sits around $0.00001291. This level represents where SHIB traded before the October 10 market crash that disrupted broader cryptocurrency markets.

Extended targets above pre-crash levels

Reaching $0.00001291 would require 23% appreciation from current market prices. This target would represent recovery to pre-crash levels and establish foundation for testing higher resistance zones.

Additional analysts project further gains if SHIB reclaims and maintains $0.00001291 as support. SwallowAcademy noted that holding this level would enable a clean sweep through the 200-day exponential moving average resistance.

The 200-day EMA currently positions at $0.00001329, providing the next technical barrier beyond the immediate $0.00001291 target. Breaking above this moving average would open paths toward greater heights according to technical analysis frameworks.