After 560 days of being stuck under a descending resistance trend line, the Shiba Inu (SHIB) price has finally broken out and is making an attempt to close above it. This breakthrough comes as a significant development for SHIB, as it had been rejected by this trend line thrice in the past. Despite this long-term breakout, SHIB is facing resistance on the lower timeframes, indicating that the journey to higher levels may not be smooth sailing.
Analyzing the weekly time frame, the SHIB price was able to breach the descending resistance trend line and reach a high of $0.00000147 before experiencing a slight decline. This marks the highest price level since February 2023, with the challenge now being for SHIB to achieve a weekly close above this significant milestone. The weekly Relative Strength Index (RSI) supports this breakout, as it moved above 70 during the breakout, signaling a bullish trend and favorable market conditions for SHIB.
Moving to the daily time frame, despite the long-term breakout, the SHIB price has yet to move outside its long-term ascending parallel channel. Reaching this resistance line led to a rejection, creating a long upper wick in the process. However, the daily RSI has turned bullish after crossing above 70, providing a positive outlook for SHIB’s future price movement. If SHIB manages to break out, it could potentially see a 35% increase to the next resistance level at $0.0000180, but a rejection from the trend line could trigger a 15% drop to the middle of the channel at $0.0000110.