Shiba Inu Needs This Level to Confirm Bullish Inverse Head and Shoulders Pattern

A classic inverse head-and-shoulders pattern is forming on the Shiba Inu chart, and a breakout could signal bullish potential for the token.

This formation could lift optimism in a market mired in volatility and price uncertainties. Shiba Inu (SHIB) has continued to show weakness, dropping over 20% in the past 30 days, a trend that has spread across the broader crypto market. Yet recent price action could signal an impending shift in trend.

Key Points

• A classic inverse head-and-shoulders pattern is forming on the Shiba Inu chart, and a breakout could signal bullish potential for the token.
• The pattern is in its late formation phase, having printed the head and the left and right shoulders.
• The left shoulder formed around $0.00000616, the head around its multi-year low of roughly $0.00000510 on February 6, and the right shoulder near $0.00000614.
• For the structure to spur the expected price bounce, it needs to break above its neckline resistance around $0.0000070-$0.0000072.
• Breaking and closing above $0.0000072 with volume will confirm a pattern, paving the way for a push to $0.0000078, then $0.0000085, and finally $0.0000090.
• There is a support level at $0.0000060 if bears continue to push prices lower, and a major pattern breakdown will occur when SHIB falls below $0.0000058.

Shiba Inu Prints Clean Inverse Head and Shoulders Pattern

Technical analyst Crypto Sat has lifted the hopes of SHIB holders after identifying a bullish formation on the 4-hour chart. Recently on X, he highlighted a clean inverse head-and-shoulders (H&S) pattern.

Notably, the pattern is in its late formation phase, having printed the head and the left and right shoulders. The analysis shows the left shoulder formed around $0.00000616, the head around its multi-year low of roughly $0.00000510 on February 6, and the right shoulder near $0.00000614.

Typically, an H&S pattern spells bearish momentum. But since it is inverted, it suggests that selling pressure might be nearing exhaustion. For it to spur the expected price bounce, however, it needs to break above its neckline resistance. The analyst believes this level to be around $0.0000070-$0.0000072.

Key Price Levels to Watch

Breaking and closing above $0.0000072, which is 15% away from the current price, with volume, will confirm the pattern. From there, Shiba Inu will aim for a quick push to $0.0000078 before a measured move to $0.0000085, then to $0.0000090.

However, the market remains weak, and the possibility of further pullbacks is not off the table. Per the analysis, there is a support level at $0.0000060 if bears continue to push prices lower. Meanwhile, a major pattern breakdown will occur when SHIB falls below $0.0000058.

Essentially, Crypto Sat is suggesting that if the $0.0000060 and $0.0000058 levels fail, the H&S pattern will be invalidated. The recent price high would become a lower high, with the meme coin continuing bearish momentum to retest the head lows around $0.0000051.

Bullish Formations for Shiba Inu

Interestingly, Crypto Sat is not the only commentator to have identified a pattern suggesting a trend shift for Shiba Inu. In a recent price analysis, SwallowAcademy highlighted a break in bearish market structure still on the 4-hour chart.

The token broke past its previous lower high when it rallied to $0.00000725 on February 14. Now SHIB is retesting the breakout level, and its success would take it to $0.00000085, one of Crypto Sat’s targets.

Despite these bullish takes, bears are in charge of the market. As a result, renewed selling pressure could push Shiba Inu to even lower prices.