TLDR
- Shiba Inu formed an inverted head-and-shoulders pattern on the daily chart
- SHIB broke through the neckline with a surge to $0.00001765 before retesting support
- The pattern’s completion suggests possible bullish continuation
- Key resistance levels include the 200-day EMA at $0.00001603 and Fibonacci levels above
- If support at $0.00001430 fails, the bullish outlook would be invalidated
Shiba Inu (SHIB) has completed a textbook inverted head-and-shoulders pattern on its daily chart, potentially signaling further upside ahead for the popular meme cryptocurrency.
The pattern developed over more than two months this spring. It featured three distinct troughs: a left shoulder bottoming around $0.00001082 in mid-March, a head dipping to approximately $0.00001030 in early April, and a right shoulder finding support near $0.00001230 in early May.
This technical structure culminated in a decisive breakout on May 8. SHIB’s price surged through the pattern’s neckline with strong momentum.
The breakout carried SHIB to $0.00001765, its highest level since early February. This represents a gain of over 70% from the pattern’s lowest point.
After reaching this local peak, profit-taking emerged. SHIB experienced what technicians call a “throwback” or retest of the breakout level.
Technical Levels to Watch
The price has now slid back to test the neckline zone between $0.00001400 and $0.00001470. So far, buyers have defended this area, validating it as a fresh support level.
This successful retest completes the pattern according to many technical analysts. Independent analyst Cantonese Cat noted: “SHIB daily – inverted H&S brokeback pattern completed. Favors bullish continuation.”
The vertical depth of the formation measures approximately $0.0000037 from the head’s extreme to the neckline’s midpoint. When added to the breakout area, this measurement aligns with the local top at $0.00001765.
Looking ahead, several key resistance levels stand in the way of further advances. The first major hurdle is the 200-day exponential moving average at $0.00001603.
Beyond that, Fibonacci retracement levels offer a roadmap for possible targets. The 23.6% retracement sits at $0.00001865, while the 38.2% level stands at $0.00002382.
The 50% retracement level at $0.00002799 coincides with the lower boundary of December’s congestion zone, making it a key area to watch.
More ambitious targets include the golden ratio (61.8%) mark at $0.00003217 and the 78.6% retracement at $0.00003811. These would represent the final major obstacles before any challenge of last summer’s high at $0.00004569.
On the downside, failure to maintain support at the neckline (approximately $0.00001430) would invalidate the bullish scenario. This would shift focus back to the 50-day EMA around $0.00001399 and potentially back to the cycle low at $0.00001030.
Until that downside scenario materializes, the technical structure suggests momentum favors buyers pushing for higher levels in the coming weeks.
The next few trading sessions will be crucial in determining whether bulls can leverage this technical victory into continued upward momentum or if bears will drag the token back into its previous trading range.
Currently, SHIB trades in a critical zone where technical factors suggest the potential for further gains if support holds.
The inverted head-and-shoulders pattern is considered complete now that price has both broken out and successfully retested the neckline as support.
For now, the Fibonacci grid indicates that momentum remains tilted in favor of buyers attempting to push SHIB back into the high-teens and possibly the low-twenties price range.
The post Shiba Inu (SHIB) Price: Chart Pattern Hints at Possible 70% Move From Recent Lows appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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