An analysis said Shiba Inu has entered a new upswing after breaking above a long-term downtrend line.

On Aug. 27, blockchain outlet The Crypto Basic reported that cryptocurrency analyst Crypto Sheriff argued Shiba Inu has entered a recovery phase after a period of decline and sideways trading, and could then move into a "rocket phase".

The key basis is the break from the long-term trend line. Crypto Sheriff said Shiba Inu traded below a downtrend line for about 5 years and stayed in a long sideways range near the bottom throughout that period. It failed to break key resistance due to persistent selling pressure, but the recent upside break changed the market structure, he said.

Crypto Sheriff divided Shiba Inu's path into a decline, a correction, a recovery and a rocket phase. He said the breakout may not be a simple rebound but the start of a recovery phase, and assessed that the final stage of the current cycle may still remain. He did not present a specific target price, but suggested another upward rally may not be far away.

Shiba Inu entered a long decline after hitting an all-time high of $0.00008845 in October 2021. After years of moving sideways near the bottom, it recently broke above the downtrend line. The rebound is still unstable. It once rose above $0.0000061 but gave back part of the gains and is now trading around $0.0000053.

Crypto Sheriff said this correction does not invalidate the recovery scenario. He focused on a confirmed change in market structure in the bigger picture, rather than the pullback. He interprets the latest correction as short-term turbulence after a trend reversal.

Even so, the gap between optimism and reality remains large. Crypto Sheriff has previously forecast that Shiba Inu could rise to $0.0002 and further to $0.001. But Shiba Inu has not again come close to its previous high of $0.00008845 even after such a forecast emerged in October 2024.

An exceptionally strong move came in December 2024. Shiba Inu climbed to about $0.000033 amid a broader crypto market rally that followed Donald Trump's re-election. But momentum later weakened, and in 2026 it has stayed below $0.00001 throughout.

Based on the current price of $0.000005292, reaching $0.0002 would require a rise of about 3,679 percent. To reach $0.001, it would need to rise by about 18,796 percent more. Based on these figures alone, the "rocket phase" Crypto Sheriff described is closer to a very optimistic scenario than a confirmed trend.

Ultimately, the core of the analysis lies in whether the structure has changed rather than the price level itself. Shiba Inu breaking above the long-term downtrend line was presented as a clear change, but whether it leads to a further rally will depend on whether prices can sustain the recovery phase.

Decline, consolidation, recovery, and the rocket phase! For five years, $SHIB was in a downtrend, trading below the descending trend line. It had been consolidating at the bottom for months! Now, it is above the descending trend line but in the recovery phase! The next… pic.twitter.com/SdMNvhox81