Shiba Inu has broken above a descending trend line that held prices in check for nearly two months. The move marks a structural shift that has caught the attention of traders and on-chain analysts alike. Whether the breakout sustains depends on what happens at a critical support level in the days ahead.
SHIB was trading at approximately $0.0000617 at the time of writing, having cleared the overhead resistance that defined its prolonged consolidation phase. The breakout is technically significant. Price had repeatedly failed to breach this level, making the eventual break a notable development in the token’s short-term outlook.
Technical Structure Shifts, But Caution Lingers
The break above the trend line resistance signals a potential early reversal in market structure. Bulls have responded with renewed interest. However, the move is not without risk.
The Relative Strength Index (RSI) has pulled back from overbought territory. This suggests short-term selling pressure remains present. A brief correction or consolidation period is possible before any sustained upward momentum resumes.
The Stochastic RSI reinforces this outlook. The indicator points to a likely pause in price action. Traders watching these signals are prepared for a near-term pullback rather than an immediate continuation higher.
The $0.000055 zone stands out as the key level to monitor. A liquidity cluster of approximately 7.7K wallets sits near this price. Such zones have historically attracted price action. A retest of this area would serve a technical purpose, sweeping liquidity, clearing weak positions, and creating the conditions for a healthier rally.
If buyers defend $0.000055 on any retest, the next upside target becomes clear. A move toward $0.000065 is the projected outcome. A significant liquidity cluster sits near that level as well, which adds weight to its relevance as a resistance and potential magnet for price.
On-Chain Data Supports the Bullish Case
Beyond technicals, on-chain activity has added substance to the breakout narrative. SHIB recorded net positive inflows over the past 48 hours. Total inflows reached 800 billion SHIB tokens, equivalent to approximately $4.8 million at current prices.
This flow of capital into exchanges suggests accumulation activity. Investors appear to be positioning for potential long entries, particularly during any short-term price dip. The timing aligns with broader market behavior, as global economic uncertainty continues to push investors toward digital assets and commodities as alternative stores of value.
Source: https://coinpaper.com/15695/shiba-inu-price-signals-trend-reversal-as-bulls-eye-0-000065-target