The Shiba Inu (SHIB) digital asset has been witnessing a volatile market ever since the price broke out from a long-term descending resistance line. The sellers have been able to push the price below the resistance line which created more uncertainties in the market and the investors need an analysis to decide whether to purchase SHIB or not.

To make a valid judgment, investors need to understand the recent price movements both on a daily and weekly time frame. The readings on a weekly time frame suggest an inexact trend with the price not sustaining the increase after an upside break. The Relative Strength Index (RSI) has also been hovering around the 50 mark.

A look at the daily technical analysis provides better understanding of what is going on in the Shiba Inu market. The SHIB price witnessed a break out from a short-term descending resistance line, indicating a possible bullish trend in the near future. An uptrend which goes all the way back to January, making a five-wave move up and a three-wave correction afterwards, formed a higher low near the 0.786 Fibonacci Retracement level, providing support for the digital asset.

However, despite such indication of a bullish trend, the price of Shiba Inu (SHIB) still faces uncertainty. In case of the continuation of the momentum of the price increase, the digital asset could move to the $0.0000122 resistance area. On the other hand, if the price falls below its March low at $0.0000096, it would likely cause significant losses and lead to a drop to $0.0000080.

To sum up, while the breakout of the SHIB price was initially met with bullish enthusiasm, the price of the digital asset has failed to confirm a strong uptrend. Investors, thus, ought to wait for the market to make a new higher low or drop below the $0.0000096 before making the decisions. If the former event takes place, the SHIB price could likely make an attempt at breaking out above the $0.0000122 resistance area; if the latter happens, losses to the $0.0000080 level are probable.



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