A shift in structure is beginning to emerge for Shiba Inu [SHIB]. After weeks of consolidation, the token has broken above a descending trend line resistance that had capped price action for nearly two months.
This breakout has started to restore optimism among market participants. Could the breakout present the required spark to keep the bulls going?
Breakout signals early trend reversal
The break above the trend line resistance marks a key technical development. The technical structure shift could usher in renewed interest from SHIB bulls.
However, confirmation requires sustained follow-through. Without it, the price may fall back into consolidation.
Momentum indicators hint at short-term caution. The Relative Strength Index (RSI) has just bounced from an overbought region.
The momentum shift implies that the market may be in for a short correction or retest before the projected bullish run resumes.
Source: TradingViewA liquidity sweep could precede SHIB’s rally
Current price action points to a likely scenario. SHIB may retest the $0.000055 zone to squeeze the liquidity cluster of around 7.7K, since such zones have attracted price before.
Usually, liquidity sweeps help the market gather orders and also remove weak hands before continuation.
If this retest holds, it could set the stage for the next rally, with $0.000065 emerging as the next key target in case of a successful reversal. A significant liquidity cluster rests near the $0.000065 price level.
Source: CoinGlassInflows support the market bulls
On-chain activity adds weight to the bullish technicals. SHIB has recorded positive inflows over the past 48 hours.
In fact, the token has recorded a total of 800 billion SHIB, which is approximately $4.8 million based on the trading price at press time. This suggests more capital is entering the exchanges from investors, probably with an intention to take more long positions during the correction.
The timing is on point as most investors are diversifying their portfolios to digital assets and commodities as global tensions hit their peak.
Source: CryptoQuantWhat could be next for SHIB?
The structure is improving, but caution remains. The breakout is a positive signal, especially given the positive liquidity bias and surging inflows into exchanges.
However, SHIB stochastic RSI suggests a possible pause and projects a potential price correction in the short run before the rally resumes.
If buyers defend the retest zone, SHIB could push toward $0.000065. For now, $0.000055 remains the key level to watch.
Final Summary
- SHIB breaks trend line resistance, signaling a potential shift toward bullish momentum.
- A retest near $0.000055 may precede a liquidity-driven rally toward $0.000065 if inflows and demand hold steady.
Source: https://ambcrypto.com/shiba-inu-breaks-past-a-key-resistance-can-shib-rally-to-0-000065/
