Shiba Inu price action shows signs of a potential bullish reversal after weeks of sustained weakness across the crypto market. Analysts report that an inverse head-and-shoulders pattern is forming on the 4-hour chart, raising expectations of a breakout. SHIB has dropped over 20% in the past 30 days, reflecting broader volatility and price uncertainty. However, recent technical structure suggests selling pressure may be fading if bulls reclaim key resistance levels.
Neckline Breakout Holds the Key for Shiba Inu
Technical analyst Crypto Sat stated on X that SHIB has formed a clean inverse head-and-shoulders pattern in its late-stage formation. He noted that the left shoulder formed near $0.00000616, while the head appeared around the multi-year low of roughly $0.00000510 on February 6. The right shoulder developed close to $0.00000614, completing the structure. According to him, the inverted formation signals that bearish momentum may be nearing exhaustion.
He explained that the neckline sits between $0.0000070 and $0.0000072. A strong close above $0.0000072 with increased volume would confirm the breakout. That level stands about 15% above the current price. If SHIB clears it, he expects a quick push toward $0.0000078. He then projected a measured move to $0.0000085, followed by a potential advance to $0.0000090.
Crypto Sat cautioned that failure to break resistance could extend downside risks. He identified $0.0000060 as immediate support if selling resumes. A decline below $0.0000058 would invalidate the bullish setup. In that scenario, SHIB could revisit $0.0000051, the level that formed the head.
Broader Market Structure Points to Possible Trend Shift
SwallowAcademy also highlighted shift in Shiba Inu market structure during the same timeframe. He reported that SHIB broke its previous lower high during a rally to $0.00000725 on February 14. That move signaled a break in the bearish market structure.
He added that SHIB is now retesting the breakout level. If buyers defend that zone, price could climb toward $0.0000085, aligning with Crypto Sat’s target. Despite these bullish signals, analysts acknowledge that bears still control broader market momentum. Renewed selling pressure could therefore push Shiba Inu to lower levels if support fails.
As of the writing, Shiba Inu was trading at $0.00000618, down by 5.08% in the past 24 hours.
Source: https://coinpaper.com/14818/shiba-inu-inverse-head-and-shoulders-pattern-signals-possible-breakout
