Shiba Inu (SHIB), the popular meme-based cryptocurrency, may be on the verge of a significant upward breakout, according to chart patterns identified by crypto analyst Alex Clay. Using a classic technical pattern known as the inverse head and shoulders, Clay highlights that SHIB could see substantial gains if it successfully clears a key resistance level. This pattern, often seen as a sign of trend reversals, could spell a major rally for Shiba Inu, enticing investors and enthusiasts alike.
Decoding The Inverse Head And Shoulders Pattern
The inverse head and shoulders is a technical analysis pattern known for signaling potential reversals in downtrends. It comprises three distinct troughs: the “head,” which is the lowest dip, flanked by two “shoulders” at slightly higher levels. For SHIB, Clay’s analysis reveals that this pattern has been gradually forming since June, indicating a potential bullish reversal if SHIB can breach its neckline resistance level.
Shiba Inu’s Price Journey and Pattern Formation
Shiba Inu’s price movements over the last several months have laid the foundation for this inverse head and shoulders setup. The pattern began with a dip from the $0.000019 level in June to a low of $0.00001266 by early July, followed by a quick recovery back to $0.000019. This fluctuation created the left shoulder of the pattern, establishing a significant resistance level at $0.000019.
In August, SHIB experienced another steep drop to $0.00001078, which was followed by a rally back to the neckline at $0.000019 in late September. This deeper dip formed the head of the pattern, marking $0.00001078 as a key support level in the process. Finally, Shiba Inu dipped again in October, this time falling to $0.000015, before resuming its upward trajectory. This final move shaped the right shoulder, setting the stage for a potential breakout.
As of Oct. 26, SHIB has shown promising momentum, recording four consecutive daily gains and currently trading at $0.00001881. However, to confirm the pattern and trigger a breakout, Shiba Inu must close decisively above the neckline resistance at $0.000019, a level that could open the doors for substantial price increases.
Key Price Targets for SHIB’s Potential Rally
If SHIB completes the inverse head and shoulders pattern by breaking through the $0.000019 resistance level, Clay has pinpointed three critical price targets for the token, based on Fibonacci retracement levels.
- First Target – $0.00002830
This initial target aligns with the 0.5 Fibonacci retracement level, representing a significant resistance point. A rally to this level would mark a notable gain for SHIB and establish a new zone of potential support. - Second Target – $0.00003235
The second target sits at the 0.618 Fibonacci retracement level, which often serves as a pivotal point in market rallies. Reaching this level would signal robust bullish momentum and may attract additional buying interest. - Third Target – $0.00003820
The final and highest target on Clay’s chart aligns with the 0.786 Fibonacci retracement level. Achieving this peak would represent a dramatic increase from SHIB’s current trading price, potentially propelling the token to levels unseen in recent months.
Also Read: Shiba Inu (SHIB) Price Cap Limited By Token Supply – Analyst Recommends WallitIQ (WLTQ) For High Returns
The road ahead for Shiba Inu hinges on its ability to overcome the $0.000019 neckline. If SHIB successfully completes the inverse head and shoulders pattern, Clay’s price targets suggest an optimistic future for the token, offering potential rewards for traders looking to capitalize on SHIB’s bullish momentum. However, as with any technical pattern, confirmations are essential, and traders should watch for a solid close above $0.000019 before expecting further gains.
While the crypto market remains highly volatile, Shiba Inu’s recent gains and technical indicators suggest that this dog-themed token may be gearing up for an exciting move. Whether SHIB can break out of its pattern and reach these ambitious targets remains to be seen, but for now, all eyes are on the neckline and the next steps of this unfolding pattern.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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