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Momentum is building for Shiba Inu ($SHIB), and breaking certain impediments could drive a rally of over 50% in the near term.
Indeed, Shiba Inu has shown strength recently, holding key support levels despite broader market uncertainty. Beyond holding the $0.0000056 demand zone, $SHIB has also made considerable efforts to break higher resistance levels, keeping the prospects for an impulsive upward move alive.
Key Points
- Shiba Inu is building up for a solid breakout from two major resistance barriers.
- Specifically, the higher descending trendline and a horizontal resistance represent its major impediments.
- The closest to the current price is the horizontal resistance around $0.00000614 and $0.00000640.
- Breaking above this would take Shiba Inu towards a higher descending trendline that has served as resistance since September 13.
- When Shiba Inu breaks these barriers, it could lead to at least a 50% rally in the coming days.
Shiba Inu Defies First Resistance, but There’s More
World of Charts, a widely followed market analyst, took to X to highlight that Shiba Inu is building up for a solid breakout. Notably, $SHIB has already shown strength around a “counter trendline” resistance neckline.
An accompanying chart shows that the meme coin broke above this line on March 13 after closing above $0.00000592. This clean break outside the descending trendline has held, indicating that $SHIB is showing momentum for further upside.
What Lies Ahead for $SHIB
In an updated outlook, World of Charts shared two more barriers that stand between the token and a notable price shift. Specifically, he mentioned a higher descending trendline and a horizontal resistance as major impediments.
The closest to the current price is the horizontal resistance around $0.00000616 and $0.00000640. Recently, Shiba Inu has faced strong pushback around this level, with selling pressure curbing a sustained price uptrend on February 25, March 16, and March 25.
Breaking above this would take Shiba Inu towards a higher descending trendline. Notably, this line has been serving as resistance since September 13, after $SHIB dropped from the high of $0.00001484. The token has since made lower highs and lower lows below this downward-sloping resistance.
The analyst noted that these two supply zones are the final barriers, and Shiba Inu is building up to break out above them. Doing so would lead to at least a 50% rally in the coming days. For context, the token trades at $0.00000591, and a 50% increase would take it to around $0.00000890.
Near-Term Resistance Still Strong
Notably, Shiba Inu is still struggling with lower-timeframe resistance. Despite attempting to break out on Monday, reaching a high of $0.00000616, it did not close above another descending trendline on the 4-hour chart.
In the past 15 days, the meme coin has retested this trendline three times, but each attempt has faced rejection. While this weakens the dynamic resistance, $SHIB still has not found the required momentum to break above it. If this supply zone gives way, it paves the way for the token to revisit higher prices.