Analyst Identifies Bullish Shiba Inu Head and Shoulders Pattern: Here are 3 Upside Targets
Shiba Inu (SHIB) may be laying the groundwork for a bullish push as market analyst Alex Clay highlights an Inverse Head and Shoulders pattern on the daily chart.
According to the chart, this pattern, which often signals trend reversals, indicates that SHIB could be on the brink of an upward breakout. Clay has identified three specific price targets that Shiba Inu may reach if this pattern plays out.
Typically, an inverse head and shoulders pattern features three troughs, with the middle being the lowest, representing the “head,” while the other two form the “shoulders.”
The Shiba Inu Inverse Head and Shoulders Pattern
Clay’s chart points out Shiba Inu’s price movements since June, which led to the formation of each structure. Specifically, Shiba Inu collapsed from the $0.000019 region in late June to a low of $0.00001266 on July 5, and then recovered to $0.000019 two weeks later. These movements formed the left shoulder.
Shiba Inu Inverse Head and Shoulders | Alex Clay
Meanwhile, Shiba Inu recorded another slump from $0.000019 to a deeper bottom of $0.00001078 on Aug. 5. From this low, it staged a second recovery to cross the $0.000019 level by late September. This marked the formation of the head, with the $0.000019 becoming the neckline.
Further, the bearish push that ensued at the start of October resulted in another correction for Shiba Inu. The dog-themed token collapsed to the $0.000015 region in early October. However, it is now leveraging the ongoing market recovery to break above the $0.000019 neckline and form the right shoulder.
SHIB has recorded four consecutive intraday gains since Oct. 26, when the latest recovery began. Currently trading for $0.00001881, Shiba Inu would need to decisively close above the neckline at $0.000019 to complete the formation of the inverse Head and Shoulders struct.
SHIB Price Targets
Clay has identified three upside targets for SHIB if it successfully breaks above the neckline resistance. The first target is set at $0.00002830. This target coincides with the 0.5 Fibonacci retracement level, a major resistance point.
The second target is at $0.00003235, corresponding with the 0.618 Fibonacci retracement level. The third and final target, $0.00003820, aligns with the 0.786 Fibonacci retracement level. This target is the highest level on the chart, indicating a peak that Shiba Inu could reach if bullish momentum persists.