Shiba Inu (SHIB) has broken above a downtrend line that had lasted for more than a month on a daily chart. Buying pressure has revived over the past 24 hours, and it closed trading above a key resistance line.

On April 6 (local time), blockchain outlet The Crypto Basic reported that the move was meaningful because a technical resistance breakout and a shift in on-chain fund flows were confirmed at the same time. Shiba Inu appears to be moving out of a long period of supply dominance, raising the possibility of a turn higher.

The downtrend line began forming after an intraday high of $0.00000725 on Feb. 14. As lower highs persisted, the price retested a key support zone. The trendline capped Shiba Inu again on March 16 ($0.00000644) and March 25 ($0.00000628), with rebounds rejected both times.

On the previous day, Shiba Inu slid as far as $0.00000579 but recovered losses and closed at $0.00000600. The daily close then settled above the downtrend line. The assessment is that the recovery developed into an actual breakout, supported by buying interpreted as accumulation pressure by holders.

Technically, it also moved back above the 50-day moving average ($0.00000591). Seen as a factor supporting a bullish move, the next resistance is cited around $0.00000673, the 100-day moving average.

On-chain indicators also pointed in the same direction. Based on data from on-chain analytics firm CryptoQuant, exchange netflow over the past 24 hours was minus 133.3 billion SHIB. A net outflow means withdrawals exceeded deposits, showing holdings moved off exchanges. It suggests investors are placing more weight on accumulation than selling.

Trading volume rose 41 percent over the past 24 hours. In taker flows in spot and futures markets, buy volume slightly exceeded sell volume, signalling short-term buying dominance.

Still, for the breakout to solidify into a trend reversal, follow-on buying needs to continue and push steadily above the 100-day moving average. The market reads the exchange net outflow and rising volume as positive signals, but a cautious view has also emerged that a renewed break back below the trendline cannot be ruled out if it proves only a short-term rebound.

Whether the rally continues depends on whether the technical breakout leads to an actual improvement in supply and demand. If accumulation and buying dominance persist, Shiba Inu could open room for additional rebounds, but if volume fades quickly or it fails to break resistance lines, the possibility of increased volatility could again come to the fore.