- SHIB price is setting up a potential Adam and Eve pattern, suggesting a reversal.
- A decisive close above $0.0000109 will confirm a breakout and project a 30% upswing to $0.0000146.
- A breakdown of 0.00000784 will invalidate the bullish thesis and trigger a downtrend.
SHIB price shows the formation of a bottom reversal technical pattern that projects a huge potential bullish breakout. However, Shiba Inu needs to produce a decisive close above a critical resistance level to kick-start this upswing.
SHIB price needs to maintain its bullishness
SHIB price action since May 20 has formed two distinct valleys known as Adam and Eve. The first swing low is narrow and v-shaped, known as Adam, while the one that follows has a rounded bottom and is referred to as Eve.
This technical formation is a bottom reversal pattern that projects a 30% upswing to $0.0000146. The target is determined by measuring the distance between the valley’s swing low to the peak and adding it to the horizontal resistance level connecting the swing highs.
Investors need to note that this is a potential pattern, and confirmation of the breakout will arrive when Shiba Inu price produces a decisive 4-hour candlestick close above $0.0000109.
If the bullish momentum persists after hitting the intended target, SHIB price could rise another 9% to tag the immediate resistance level at $0.0000159.
SHIB/USDT 4-hour chart
On the other hand, if Shiba Inu price continues to bleed, the bullish outlook will be in jeopardy. If the sellers manage to produce a convincing close below $0.00000784, it will invalidate the bullish outlook.
Confirmation of a downtrend will arrive after SHIB price closes below the swing low at $0.00000731, formed on May 29.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Latest Crypto News & Analysis
Editors’ Picks
Bitcoin investors in extreme fear, unaware of incoming bullish supply shock
BTC Fear and Greed index shows that fear has gripped markets for over 60 days in a row. Popularity and demand for altcoins with small market capitalization increased. No big spikes noted in BTC net flows, whales with less than 10,000 BTC continue accumulating.
Dogecoin price finds local bottom, DOGE targets $0.30
Dogecoin price has not had the best series of numbers in the past few days. With the push to the downside and monthly pivots each time broken to the downside, it is fishing in the bottom for some support.
Shiba Inu must watch out for the bull trap as SHIB bears remain in control
Shiba Inu looked set for a jump higher just two weeks ago. Instead, it has dropped 28% in value over the past nine days. The glut in cryptocurrencies is helping short sellers to push prices further down.
Stellar caught in downtrend to $0.195
XLM price is in a consecutive three-day losing streak. Tops and lows are getting lower in tandem. More downside is expected for Stellar as no real support now is present until $0.195.
Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.