Shiba Inu (SHIB) has broken above a critical descending trend line resistance after weeks of consolidation, signaling a potential structural shift. Technical analysis suggests the token may now undergo a short-term correction or retest of the $0.000055 support zone before a possible rally toward $0.000065. This outlook is supported by significant on-chain inflows, with approximately $4.8 million worth of SHIB entering exchanges over the past 48 hours.
The memecoin Shiba Inu has broken above a descending trend line resistance that capped its price action for nearly two months. This breakout marks a key technical development that could usher in renewed interest from bulls, though confirmation requires sustained follow-through. Momentum indicators hint at short-term caution, with the Relative Strength Index having just bounced from an overbought region.
Current price action points to a likely scenario where SHIB may retest the $0.000055 zone to squeeze a liquidity cluster. 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.
On-chain activity adds weight to the bullish technicals, as 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 structure is improving, but caution remains given the breakout is a positive signal. However, SHIB stochastic RSI suggests a possible pause and projects a potential price correction in the short run before the rally resumes. For now, $0.000055 remains the key level to watch for buyers seeking to defend the retest zone.
