Shiba Inu (SHIB) price finally broke above the 560-day descending resistance trendline and is about to close above it.
Despite the long-term breakout, SHIB is facing resistance on lower time frames.
SHIB finally breaks free from long-term resistance
Weekly technical analysis shows that SHIB price has broken out of the descending resistance trend line. This trend line has existed for 560 days and he has successfully rejected the Shiba Inu price three times.
On February 20th, SHIB broke through such a huge resistance zone and reached a high of $0.00000147, then fell slightly. This is the highest since February 2023, and SHIB has yet to reach a weekly close above this.
The weekly Relative Strength Index (RSI) confirms the breakout. When evaluating market conditions, traders use her RSI as a momentum indicator to determine whether the market is overbought or oversold and to decide whether to accumulate or sell assets.
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Bulls are still in favor if the RSI reading is above 50 and trending up, but vice versa if the reading is below 50. The indicator rose above 70 (green icon) during the breakout, indicating a bullish trend.
SHIB Price Prediction: Is the breakout confirmed?
Technical analysis from the daily timeframe shows that despite the long-term Shiba Inu breakout, the price has not yet moved out of the long-term ascending parallel channel.
In fact, it arrived yesterday and was rejected, resulting in a long upper core. This channel has been present since June 2023 and this was the second touch of the resistance trend line. Although the price has not broken, the daily RSI has become bullish since the indicator crossed 70.
If SHIB breaks out, there is a potential for a 35% rally to the next resistance at $0.0000180.
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Despite the bullish SHIB price prediction, a rejection from the trendline could trigger a 15% decline to $0.0000110 in the middle of the channel.
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