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On the daily chart, Shiba Inu seems to be forming a head-and-shoulders pattern, which is a bearish reversal indicator that frequently indicates possible downside in the future. There are three peaks in this formation with the middle peak (the head) being higher than the two side peaks (the shoulders) and a neckline serving as a level of support.
The neckline for SHIB appears to be developing close to the $0.00002100 level. Price confirmation of the head-and-shoulders pattern could lead to additional bearish momentum if it breaks below this crucial support. Measuring the distance between the neckline and the head’s peak and projecting it downward would yield the price target for this pattern.
This places a possible target in the $0.00001750 range, which is in close proximity to the 200 EMA, which is a powerful support level for SHIB. At the moment, SHIB is maintaining its position above the neckline despite slight bullish attempts to break higher. Nevertheless, low trading volumes and RSI levels hovering around neutral territory — neither significantly overbought nor oversold — indicate that momentum is weak.
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This points to traders’ hesitancy and the asset’s unclear trajectory. SHIB may invalidate the bearish pattern and target resistance at $0.00002250 and then $0.00002500 if it can maintain above the neckline and regain traction. A break above these levels might rekindle optimism and spur additional profits.
A confirmed break below the neckline, on the other hand, might draw more bearish momentum if selling pressure increases, pushing SHIB in the direction of the pattern’s price target, which is around $0.00001750. Traders should keep a close eye on the $0.00002100 level for indications of a breakout or breakdown for the time being. All things considered, prudence is advised because SHIB’s next course of action may be crucial to its immediate future.
Disclaimer: The opinions expressed by our writers are their
own and do not represent the views of U.Today. The financial and market information
provided on U.Today is intended for informational purposes only. U.Today is not
liable for any financial losses incurred while trading cryptocurrencies. Conduct
your own research by contacting financial experts before making any investment
decisions. We believe that all content is accurate as of the date of publication,
but certain offers mentioned may no longer be available.
Source: https://u.today/shiba-inu-shib-paints-head-and-shoulders-pattern-possible-scenario