A technical analysis says Shiba Inu is preparing for major price volatility at the tail end of its long-term downtrend.

On May 7, blockchain media outlet The Crypto Basic reported that TradingView analyst MMBTrader said, "Shiba Inu is now waking up and ready to surge," and pointed to the possibility of entering a full-fledged upswing.

The key basis is a signal that the downtrend is weakening. Shiba Inu hit a peak near $0.0000885 in 2021 and then entered a prolonged decline, and it is now trading around $0.00000635. MMBTrader said the bearish trend continued even after Shiba Inu fell more than 90 percent, but he sees the first technical sign that the downtrend is being exhausted.

On the chart, Shiba Inu formed a lower high of $0.00001765 in May 2025 and has since moved within a larger daily downtrend channel. Within that structure, a smaller falling wedge pattern formed from October 2025, and Shiba Inu broke out of that range on April 16. The price is still moving above the top of the smaller wedge. MMBTrader called that the first bullish signal.

The analyst also said a dull accumulation phase often precedes a strong rally. He saw this period as especially long. While Bitcoin, Ethereum and XRP set new all-time highs in the previous bull market, Shiba Inu was relatively left out of the uptrend. MMBTrader said this pattern wore out holders and that market makers buy Shiba Inu at low prices at such times to seek big gains in a rebound phase.

He therefore stressed that patience is needed. He said the next price expansion phase will be very large, and he expects Shiba Inu could break through several downtrend channels in sequence and move to higher levels.

He also presented specific price ranges. Based on the chart, after breaking the smaller downtrend channel, Shiba Inu could have more than 70 percent upside potential and could move to challenge the larger channel's resistance line near $0.00000861. He said that if the trend holds above that level, a strong rally could begin.

He set a key medium- to long-term target at $0.00002049, about 220 percent above the current price. Before that, he said thin supply zones have formed at $0.0000130, $0.0000150 and $0.0000202.

Market indicators, however, do not yet fully support the optimism. On-chain data show market participant sentiment is cautious. Over the past 24 hours, open interest fell 4 percent to $61.5 million, showing waning interest in the derivatives market. Trading volume also fell 13 percent, showing the same trend.

Net exchange inflows also turned positive. Over the past 24 hours, 112 billion more Shiba Inu tokens flowed into trading platforms. That is read as a signal closer to distribution than accumulation. With technical rebound signals and on-chain caution signals appearing at the same time, whether Shiba Inu can actually break through to the upper downtrend channel is expected to be the next point to watch.