Shiba Inu Ready for Descending Channel Breakout? Key Levels to Watch

Shiba Inu is exhibiting positive momentum within a multi-month descending channel, maintaining the chances of a breakout.

-

The prominent meme coin has shown strength despite all conditions stacked against it. Specifically, geopolitical tension and broader market weakness have dampened the mood around Shiba Inu (SHIB), suppressing all attempts to break higher. 

However, it has remained above key support levels. Market observers believe this keeps bullish prospects intact.

Key Points

• Shiba Inu rebounded and has held above a key support level around $0.0000052 and $0.0000056.
• This support aligns with the lower band of a descending wedge, and holding it keeps breakout momentum alive.
• If the breakout attempt strengthens, the key resistance to watch sits at $0.00000645-$0.00000650.
• Clearing the resistance with conviction puts $0.00000815 in view, representing a 38% increase from here.

Shiba Inu Shows Signs of Life

A recent CoinCodex TradingView analysis identified this trend, as Shiba Inu shows signs of life. Despite correcting 3% since the start of the day, the token is still up slightly this week, building on its positive close in the previous week.

Additionally, SHIB rebounded from a key support level around $0.0000052 and $0.0000056. It tested this area early last month, touching $0.00000523 on March 8. The strong bounce followed, with a 23% rise to $0.00000644 by March 16. While the token has retraced slightly to $0.0000058 at press time, it remains above the support level.

Descending Channel Breakout?

Meanwhile, this $0.0000052-$0.0000056 support aligns with the lower band of a descending wedge. Notably, this channel has guided Shiba Inu’s price since July 2025, when it reached a high of $0.0000159.

Its lower support aligns with the bottom of the historic October 2025 crash, with the meme coin now compressed within this channel. According to CoinCodex, holding the $0.0000052 support keeps the potential of a breakout alive.

However, the key resistance to watch is $0.00000645-$0.00000650, which is 10% above the current price of $0.00000587. The area aligns with the channel’s upper resistance, and a breakout would trigger an even bigger move.

The analyst emphasized the importance of this zone, noting that it would play a key part in a stronger recovery. Clearing the resistance with conviction puts $0.00000815 in view, representing a 38% increase from here.

Shiba Inu On-Chain Activity Adds Weight to Breakout

With the breakout prospect still intact, Shiba Inu is not showing fundamental strength. The analysis highlighted that active addresses have dropped from 2,900 to 1,900 as user participation dwindles.

Data also indicate increased selling pressure. Specifically, Shiba Inu exchange netflow has increased 1% in the past 24 hours to 101.25 billion. The notable influx into exchanges suggests that holders are increasingly considering liquidating their positions, as market conditions remain unfavorable.