- Shiba Inu price continues the formation of the right shoulder of an inverse head-and-shoulders pattern.
- 50 six-hour simple moving average (SMA) now trending higher, dedicating support to the right shoulder consolidation.
- A decisive close below $0.00000801 would void the bullish SHIB thesis, elevating the odds for a more complex bottom.
Shiba Inu price has been engaged in a multi-week bottoming process that illustrates an inverse head-and-shoulders pattern and a precise trigger. The completion of the right shoulder should be near as SHIB seeks a rally of 80% based on the measured move of the pattern.
Shiba Inu price shows confidence, and volume delivers on conviction
Since the May 19 crash, Shiba Inu price has struggled to plot a constructive bottoming pattern with a timely entry point. Nonetheless, since June 29, SHIB has consolidated confidence in the potential inverse head-and-shoulders pattern with a symmetrical right shoulder inspired by a textbook volume profile.
As Shiba Inu price releases the oversold condition on the intra-day Relative Strength Indexes (RSI) following the 70% spike from the June 22 low to the June 29 high, investors need to monitor the 200 six-hour SMA as it slips through the right shoulder of the formation. Without the support of the strategically important moving average, the challenge increases for a successful resolution of the SHIB pattern.
Of course, it should be mentioned that the 50 six-hour SMA is crossing above the 200 six-hour SMA, triggering a bullish Golden Cross pattern on the six-hour SHIB chart, thereby adding some positivity.
The measured move target of the inverse head-and-shoulders pattern is approximately 80%, projecting a Shiba Inu price of $0.00001720 from the neckline at $0.00000936. The rally would leave SHIB just below the 38.2% Fibonacci retracement level of May’s correction at $0.00001754.
An 80% gain in a perplexing cryptocurrency complex would be a notable achievement for SHIB. However, a more realistic Shiba Inu price target is the resistance between $0.00001204 and $0.00001214, marking the fusion of the May 20 and 24 highs. A rally to $0.00001214 would conclude with a 30% gain from the current position of the neckline at $0.00000936.
Critical to the full realization of the 30% gain is overcoming the minor resistance established by the June 2 high at $0.00001048.
SHIB/USD 6-hour chart
If Shiba Inu price closes below $0.00000801, the bottoming process and the resulting inverse head-and-shoulders pattern will be questioned. A close below that level would eliminate the support provided by the 50 six-hour SMA and, at a minimum, project a more complex right shoulder and, at worst, a reversion to the lows of the head around $0.00000550.
For now, the working thesis is for a bullish resolution of the inverse head-and-shoulders pattern and a rally of at least 30%. The narrative is based on the superior volume profile underlying the head and right shoulder formation, the building of relative strength versus the cryptocurrency market and the growing dominance of altcoins versus Bitcoin over the last two weeks. Combined, they emulate a digital asset trading with conviction and confidence.
Here, FXStreet's analysts evaluate where SHIB could be heading next as it seems bound for higher highs.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.