Despite breaking through the resistance line, Shiba Inu (SHIB) failed to maintain this breakout and establish growth.
Technical analysis of the weekly chart revealed that SHIB broke through the descending resistance line in January and reached a yearly high of $0.0000157 by the end of the month.
However, it was unable to build on this momentum and retraced to the same resistance area in February. The weekly timeframe identified $0.0000096 as the key support level, which has been alternating between support and resistance since May 2022.
It is now converging with the descending resistance line. Any price dips in this area could be seen as a retest after a bullish breakout, but if SHIB closes below it, the bullish scenario could be reversed, and a fall towards $0.0000070 could be triggered.
On the daily chart, SHIB has dipped below the descending resistance line since February 4, and the market hit a low of $0.0000096 on March 10. However, the recent growth was significant for several reasons, such as confirming the support of the Fibo level 0.786 correction and completing the ABC correctional structure.
The token also broke through the descending resistance line on March 14, indicating the completion of the correction. Despite these positive developments, the daily RSI is still below 50 and cannot confirm a bullish reversal.
The failure to sustain the bullish breakout is a sign of price weakness, and the trend’s further direction may depend on how SHIB behaves around the previous resistance line. If the price bounces from it, SHIB could rise towards $0.0000123, while a bearish breakout could trigger a fall towards $0.0000077.