• Shiba Inu price faded minutes after the Elon Musk-inspired spike on Friday.
  • Corrective bounce could be followed by another pullback before SHIB is ready to begin an impulsive rally.
  • 50 twelve-hour simple moving average (SMA) has been instructive for Shiba Inu price since June 16.

Shiba Inu price is formalizing the right shoulder of an inverse head-and-shoulders pattern. Still, the SHIB rally is characterized as corrective, and the 50 twelve-hour SMA impedes the pattern’s completion. A short pullback would best serve the price structure, creating a higher low and the space to engineer an impulsive rally through the moving average and the pattern neckline.

Shiba Inu price action rebound still looks a little suspicious

Shiba Inu price collapsed over 40% from the June 15 high of $0.00000986 to the June 22 low of $0.00000560 after being overwhelmed by the selling that gripped the cryptocurrency complex. SHIB did manage to hold the June 11 low, establishing a point to build the right shoulder of the visible inverse head-and-shoulders pattern.

Shiba Inu price responded to the swift decline with a 50% rebound from the June 22 low to the June 25 high. Still, despite the impressive rebound, the price structure has wedged higher, rather than impulsively and supported by bursts of above-average volume. Thus, there is a high probability that SHIB will pull back and form a higher low before resuming higher and underpinned by a robust volume profile.

The measured move target of the inverse head-and-shoulders pattern is $0.00001712, equating to an 82% gain from the current position of the neckline. The rally target of $0.00001754 is slightly below the May crash’s 38.2% Fibonacci retracement level.

To reach the neckline at $0.00000936, Shiba Inu price will need to rally approximately 25%, overcoming the combative resistance established by the declining 50 twelve-hour SMA at $0.00000748.

A Shiba Inu price breakout above the neckline would meet resistance at $0.00001048 and then the merger of the May 24 high at $0.00001201 with the May 20 high at $0.00001214. After those levels, there is no meaningful resistance for SHIB until the measured move target of $0.00001730.

Interestingly, other cryptocurrencies like XRP and ZIL formed inverse head-and-shoulder patterns before delivering significant investment returns, albeit with a larger footprint.

However, if SHIB speculators seek an earlier entry into the trade, a close above the 50 twelve-hour SMA could be a pilot buy trigger. Or, if Shiba Inu price does pull back as anticipated, investors could buy into the weakness near solid support such as the May 19 low.

SHIB/USD 12-hour chart

SHIB/USD 12-hour chart

For now, the right shoulder price action can be defined as reluctant, but that could change. Nevertheless, a pullback in SHIB needs to hold the May 19 low to maintain the current price structure. A decline below the head’s low at $0.00000550 would void the pattern, exposing Shiba Inu price to sizeable losses. It is a possible outcome for the dog-themed cryptocurrency should the cryptocurrency complex suffer a new wave of selling.

The quick fade of Musk’s tweet hints that FOMO still is hibernating, and SHIB projections are best framed by pattern recognition and level confirmation. Thus, Shiba Inu price appears more attuned to the oscillations of the cryptocurrency market and may be waiting for a collective, impulsive rally among altcoins to guide the new trend.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP price to pull a 180 as Ripple bulls come out of the woodwork

XRP price lacks volatility as it trades close to a crucial support level. While a major reason for this is its correlation with Bitcoin, a part of it also arises from the lack of interest among the investors for this coin. There is a good chance Ripple could see a brief uptrend that pushes it toward the immediate resistance barrier.

More Ripple News

MATIC price gives bulls another opportunity to undo recent losses

MATIC price has seen an increase in selling pressure that has undone most of its gains from the last week. The retracement has knocked Polygon down to a stable barrier that is likely to sustain the incoming bearish momentum, allowing bulls to make a comeback.

More Polygon News

Crypto.com upside limited to $0.54 as CRO faces multiple hurdles

A brief technical and on-chain analysis on Crypto.com price. Here, FXStreet's analysts evaluate where CRO could be heading next.

More Crypto.com News

Google prepares for a foray into crypto, plans to expand payment division

Google is planning to enter into the cryptocurrency space as the firm has hired a former PayPal executive to lead its payment division. The multinational technology company is laying out a broader strategy to team up with a wider range of financial services including digital assets.

More Cryptocurrencies news

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis

BTC

ETH

XRP