• Shiba Inu price consolidates after triggering an inverse head-and-shoulders pattern on June 28.
  • SHIB being pressured by the declining 50-day simple moving average (SMA), which risks the short-term outlook. 
  • Twelve-hour Relative Strength Index (RSI) not overbought, opening up the potential for a quick resumption of the pattern breakout.

Shiba Inu price activated the inverse head-and-shoulders pattern on June 28. Nonetheless, the breakout was short-lived, and SHIB has fallen into a consolidation, releasing the overbought conditions on the lower timeframes. If the rookie cryptocurrency can sustain a rally above the declining 50-day SMA, it could rally 33% before striking meaningful resistance.

Shiba Inu price action remains constructive, adding credibility to the pattern

It was a long wait for SHIB investors until Shiba Inu price structure achieved some clarity. Several brief turning points marked the May-June period. Still, the price compression of the rapid correction in early May and the persistent cryptocurrency market volatility prevented the digital asset from constructing a higher probability pattern and timely entry price. However, the inverse head-and-shoulders pattern finally provided the opportunity to engage SHIB from the long side with the June 29 breakout.

The 70% advance from the June 22 low to the June 29 high pushed the lower timeframe Relative Strength Indexes (RSI) into overbought territory, leading to the ongoing consolidation. The consolidation could be defined as a handle formation on top of the inverse head-and-shoulders pattern. So far, the price-volume profile is constructive, suggesting that Shiba Inu price will bust above the 50-day SMA at $0.00000894 and continue the breakout.

The measured move target of the inverse head-and-shoulders pattern is 80%, projecting a Shiba Inu price of $0.00001680, which is just below the 38.2% Fibonacci retracement level of May’s remarkable collapse.

A projection of an 80% gain is generous when considered against the backdrop of an inconsistent cryptocurrency complex and a notable lack of FOMO in meme tokens. A more reasonable Shiba Inu price target is the May 20 and May 24 highs of $0.00001204 and $0.00001214, respectively. A touch of $0.00001214 would yield a 33% gain for SHIB investors from the current position of the neckline.

The historical precedents of XRP and ZIL demonstrate the power of inverse head-and-shoulders patterns. Thus, SHIB investors should not interpret the consolidation as a failed breakout but a new opportunity for portfolio-changing profits.

SHIB/USD 12-hour chart

SHIB/USD 12-hour chart

The Shiba Inu price action is constructive, but if the current consolidation or pause evolves into a deeper pullback, SHIB must hold the 50 twelve-hour SMA at $0.00000744 or its at risk of testing the May 19 low or possibly a sweep of the right shoulder low of $0.00000560 and the correction low of $0.00000550.

Shiba Inu price structure finally projects a bullish outcome. Still, the presence of the 50-day SMA as resistance coupled with the indecisiveness across the crypto space should keep SHIB investors alert, but with their eyes on the prize.  

Here, FXStreet's analysts evaluate where SHIB could be heading next based on brief technical and on-chain analysis on Shiba Inu price.

 

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

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP