Shiba Inu is plotting an inverse head-and-shoulders pattern, offering a unique opportunity for investors to participate in a newer Crypto with a timely, high probability entry point. Reinforcing the constructiveness of the bullish Shiba Inu narrative is the successful launch of ShibaSwap on July 6 and the declining supply on exchanges.
It is extremely rare for a newer digital asset to fall 85% over nine days and immediately rebound, recouping a large portion of the loss in a similar amount of time. Instead, the tendency is for the coin to enter a process of knocking out the remaining week holders and releasing the SHIB price compression that inevitably results from an 85% decline.
Over the last 55 trading days, SHIB coin price has methodically charted a bullish inverse head-and-shoulders pattern, marked by several false patterns and breakouts. However, the result not only shows the three components of an inverse head-and-shoulders, the left shoulder, head, and right shoulder pattern but also features a notable reduction in SHIB trade volume as the pattern has progressed, illustrating that the selling pressure has been largely exhausted.
The pattern trigger price for SHIB is the neckline of the inverse head-and-shoulders pattern at a price of $0.00000922, and the measured move is 84%, featuring a Shiba Inu price target of price $0.00001693. It would leave the digital asset just below the 38.2% Fibonacci retracement level of the May crash at $0.000001754.
Currently, Shiba Inu's price is completing the right shoulder pattern, which is showing some symmetry with the left shoulder in terms of depth, but it has a longer duration due to the sagging fortunes of the crypto market. Nevertheless, the pattern should soon resolve higher, with the most relevant resistance level coming in at $0.00001204-$0.00001214.
The only complicating factor for the positive pattern outcome is the pressure exerted on Shiba Inu price by the 50-day simple moving average at a price of $0.00000797.
If Shiba Inu's price cannot hold the $0.00000550-$0.00000560 level, the constructive outlook will be voided and suggest that the SHIB bottoming process is still not complete, and a more complex price structure is emerging.
It is a rare scenario where a clear and constructive pattern level is defined by exact support levels and a timely, definitive entry price while showing diminished selling pressure. Hence, Shiba Inu investors need to be patient and actively watch for a change of fortune in the broader crypto market to pounce on the opportunity.
0 Comments