Shiba Inu has been engaged in a multi-week bottoming process that illustrates an inverse head-and-shoulders pattern level and a precise trigger. The completion of the right shoulder should be near as SHIB price seeks a rally of 80% based on the measured move of the pattern.
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 price has consolidated confidence in the potential inverse head-and-shoulders pattern level 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 following the 70% price 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 pattern. Without the support of the strategically important moving average, the challenge increases for a successful resolution of the SHIB price 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 level 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 level from the neckline at $0.00000936. The rally would leave SHIB price just below the 38.2% Fibonacci retracement level of May’s correction at $0.00001754.
An 80% price gain in a perplexing cryptocurrency complex would be a notable achievement for SHIB. However, a more realistic Shiba Inu price target is the resistance level between $0.00001204 and $0.00001214, marking the fusion of the May 20 and 24 highs. A price rally to $0.00001214 would conclude with a 30% gain from the current position of the neckline at price of $0.00000936.
Critical to the full realization of the 30% price gain is overcoming the minor resistance established by the June 2 high at $0.00001048.
If Shiba Inu price closes below $0.00000801 level, the bottoming process and the resulting inverse head-and-shoulders pattern will be questioned. A close below that support level would eliminate the support level provided by the 50 six-hour SMA and, at a minimum, project a more complex right shoulder pattern and, at worst, a reversion to the lows of the head around $0.00000550.
For now, the working thesis is for a price bullish resolution of the inverse head-and-shoulders pattern and a rally of at least 30%. The narrative is based on the superior trade volume profile underlying the head and right shoulder pattern formation, the building of relative strength versus the cryptocurrency market and the growing dominance of altcoins versus Bitcoin BTC over the last two weeks. Combined, they emulate a digital asset trading with conviction and confidence.
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