Author：Encryption Tracker

Shiba Inu rebounds from 2025 lows, and an analysis insists that a clean downtrend breakout suggests the token has bottomed.

Analyst Lyvo shared this analysis in his recent X post, coinciding with a Shiba Inu resurgence. After a forgettable 2025, the token has started this year strong, rallying over 26% in less than a week.

Perfect Shiba Inu Bounce

Meanwhile, the analyst called the uptrend a “perfect bounce,” which was much needed as selling pressure dominated the Shiba Inu price at the closing stages of last year. Notably, Lyvo was one of the market watchers who believed this would happen for Shiba Inu while prices were low.

In his December post, he highlighted that Shiba Inu was holding the weekly price bottom around $0.0000068. He advised buying some of the token at that level, insisting it was a good opportunity for smart money traders.

His January 4 tweet built on that as he reiterated his earlier stance that the Shiba Inu chart was a proper representation of a real market bottom. The token’s rebound from its December lows has so far supported the analyst’s claim.

Breakout from Downtrend?

Furthermore, Lyvo suggested that Shiba Inu might have broken out of a downtrend, with its 22% increase in the previous week. An accompanying chart further adds context, identifying a breakout from a descending trendline in the 1D chart.

The neckline resistance started forming from a lower high of $0.0000148 on September 13 and has impeded higher SHIB prices since then. This persisted until recently, when the meme coin recorded significant price increases in three of the last four days.

It rallied 7.9% and 8.8% on January 1 and 2 before a negligible 0.3% correction the day after. The 8.8% growth ensured it broke out of the descending trendline. Yesterday, it made an even higher 11.8% price increase, pushing it further away from the former supply zone. Lyvo implied that this could be a clean downtrend breakout, setting the stage for more uptrends.

But how high? While the analyst did not mention a target, the technical construct suggests that Shiba Inu could target the origin of the trendline, which aligns with the $0.0000148 price level. From the current market price of $0.00000868, it culminates in a 70% increase.

Bullish Momentum Mounts

Meanwhile, the recent price recovery has sparked bullish sentiment among market analysts, who are predicting further upside for the token. Recently, Javon Marks predicted a rebound to $0.000032, citing a triangle breakout and a persisting bullish divergence.

Analyst Daffy Trader is more optimistic about the price of Shiba Inu, predicting a 1,150% surge to a new all-time high of $0.000090 this year.