[DigitalToday reporter Jinju Hong] An analysis has suggested Shiba Inu (SHIB) is showing a sharp short-term rise on the back of technical indicators and a healthy correction, and could soon drop one decimal place.

On Jan. 7 (local time), blockchain outlet The Crypto Basic reported that TradingView analyst PullbackSignal said technical indicators and price action spotted on Shiba Inu's 1-hour chart show it is forming a buying opportunity after a healthy correction within a new uptrend.

PullbackSignal said Shiba Inu stabilised around $0.0000090 after a pullback following a rapid rise. That area could be an attractive entry point for investors looking for further gains. The current move is described as a pullback structure within an uptrend.

PullbackSignal also presented a detailed trading strategy. He proposed $0.00000897 to $0.00000915 as the optimal buy range for Shiba Inu and set three take-profit targets based on risk-reward. The targets are $0.00001025, $0.00001081 and $0.0000116. If the call is wrong, he set $0.0000087 as a stop-loss to limit losses.

The analysis is assessed as more reliable because multiple technical indicators, not a single signal, are flashing at the same time. PullbackSignal said he considered the relative strength index (RSI), Fibonacci retracement, moving averages (MA), Bollinger Bands, price moves and candle patterns.

Shiba Inu has been gradually raising its lows since a correction on Jan. 5. This is interpreted as a technical structure suggesting buying inflows and improving short-term momentum.

Shiba Inu recently joined a relief rally in the cryptocurrency market and briefly broke above $0.00001 on Jan. 5, appearing to remove one zero after the decimal point. It failed to hold the rise and quickly corrected back to the $0.000009 range.

The price later fell to $0.0000089, but it is still trading near the favourable entry zone PullbackSignal presented. Shiba Inu is at about $0.000008982, down 3.42 percent over 24 hours but up 26.8 percent on the week, taking gains since the start of the year to more than 30 percent.

At the current price, Shiba Inu would need further gains of about 14.1 percent, 20.3 percent and 29.1 percent to reach the proposed targets. The market sees those levels as within reach, but caution has also been raised that the scenario could change depending on macroeconomic volatility and selling pressure.