Shiba Inu Breaks Downtrend, Signals Potential New Rally Phase

Shiba Inu has broken above a five-year-long descending trendline, potentially marking the end of its prolonged decline and consolidation. This significant development suggests that SHIB may be entering a new recovery phase, with analyst Sheriff predicting a strong upward rally dubbed the 'rocket phase'. Despite recent price pullbacks, SHIB's market structure remains optimistic for further gains.

The token, once considered a meme coin, has expanded its ecosystem but still lags far behind its 2021 peak. Its recent approval for listing on Japan's Nomura-backed Laser Digital platform boosted its market cap to $3.2 billion in August, pushing its Q3 return. However, the token is struggling to maintain this momentum as its seven-day moving average of mean exchange outflows has fallen by about 48%.

This decline suggests reduced momentum in holders moving SHIB to private wallets, which could indicate a potential end to the bullish reversal. Over 280 billion SHIB tokens were withdrawn from OKX exchange wallet during SHIB's recent price rebound, fueling speculation about large holder activity.