Shiba Inu (SHIB) price broke a resistance line but struggled to sustain its gains.
In early January, Shiba Inu price broke a descending resistance line and by the end of the month reached a new yearly high of $0.0000157. This also pushed the weekly RSI above 50.
However, the price failed to sustain the rally and returned to the resistance line once again in February, validating it as a support (green icon).
On the weekly time frame, the most important support lies at $0.0000096. This area has acted as both support and resistance intermittently since May 2022. Currently, it is coinciding with the descending resistance line.
As a result, any drawdown in this is considered a retest after the breakout. However, if SHIB price closes below it, it will invalidate the bullish outlook and a drop towards $0.0000070 is possible.
Shiba Inu (SHIB) Completes Price Correction
Technical analysis on the daily time frame shows that SHIB price declined below a descending resistance line since February 4th. This decline resulted in a low of $0.0000096 on March 10. The price has gone up since then.
The increase was significant for several reasons:
- The price confirmed the 0.786 Fibonacci retracement support level at $0.0000095.
- Bounce potentially completed the ABC corrective structure.
- SHIB price broke above the descending resistance line on March 14 to suggest that it has completed the correction.
However, the ERC-20 token declined during the next 24 hours, falling below its breakout level. Furthermore, the daily RSI is still below 50, failing to confirm a reversal of the bullish trend.
Ethereum-based meme coin is currently trading slightly below its breakout level. If it fails to start an increase, the price could slide back towards the 0.786 Fibonacci retracement support level. However, if there is a breakout, SHIB could move towards the nearest resistance at $0.0000123.
To conclude, failure to sustain its breakout is a sign of weakness for Shiba Inu (SHIB) price. Whether it bounces or breaks above the previous resistance line could determine the future trend. A bounce could lead to an increase towards $0.0000123, while a breakdown could lead to a decline towards $0.0000077.
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