On June 28, the Shiba Inu price forms an inverted head-and-shoulders pattern, setting the way for additional increases.
As the altcoin makes the move, the 50-hour simple moving average (SMA) has turned higher again, providing important support.
SHIB is currently trading around $0.00000939, which is striking resistance of the now visible 50-day SMA.
After SHIB triggered the neckline of an inverse head-and-shoulders pattern on June 29, the Shiba Inu price has been in a long bottoming process that appears to be now resolving to the upside. If the digital asset can overcome the 50-day SMA’s downward trend, it might rebound 30% before encountering important resistance and interested sellers.
Since the sharp decrease in May, SHIB investors have been looking for some clarity in the pricing structure. The price of Shiba Inu indicated at a few changing points, but the cryptocurrency market’s volatility prevented the meme token from defining an exact tipping point. On June 29, however, this altered when SHIB triggered the neckline of an inverse head-and-shoulders pattern before falling back into the base.
Although the 70 percent rally from the June 22 low pushed the twelve-hour Relative Strength Index (RSI) close to overbought territory, investors should view the pullback into the base as a necessary pause in the pattern’s maturation rather than a failure. Nonetheless, the 50-day SMA at $0.00000939 hangs just above the neckline, indicating that the pause may last a few days.
The inverse head-and-shoulders pattern’s measured move goal is 80 percent, implying a Shiba Inu price of $0.00001680, slightly below the 38.2 percent Fibonacci retracement level of May’s drop of $0.00001754.
It’s a bold prediction, but a more realistic aim for SHIB investors is the May 24 high of $0.00001204 or the May 20 high of $0.00001214, which would result in a 30 percent gain.
Other cryptocurrencies, such as XRP and ZIL, created inverted head-and-shoulder patterns before producing strong returns, albeit with a larger chart footprint.
12-hour chart of SHIB/USD
Shiba Inu price movement is now positive, but if the pause turns into a deeper downturn, SHIB must hold the 50 twelve-hour SMA at $0.00000744 or risk a retest of the May 19 low or perhaps a sweep of the $0.00000560 right shoulder low. Of course, if the cryptocurrency complex reverts to significant selling, this scenario takes primacy.
The SHIB 30-day MVRV ratio, which is currently at 13.75 percent, indicates that the market is somewhat overvalued. The average gain of all addresses that have acquired SHIB in the last 30 days is 13.75 percent, according to the data. It is a time frame that encompasses the majority of the bottoming process that has occurred since the May catastrophe.
The higher the MVRV ratio, the higher the unclaimed earnings, and hence the greater the possibility that SHIB holders will sell and reduce their exposure. This is why exceptionally high MVRV ratios are thought to suggest overvaluation and a reason to sell. Low MVRV ratios, on the other hand, suggest undervalued conditions and may indicate a good time to invest.
The SHIB 30-day MVRV ratio is presently positive, but this does not rule out the possibility of a huge reservoir of selling pressure entering the market at current prices. After the lengthy bottoming process, investors may seek to benefit around the $0.00001204-$0.00001214 range. Although the 30-day MVRV ratio would remain significantly below the April and May highs, that price range would represent a gain of over 100% from the right shoulder low of $0.00000560, indicating a significant overvaluation and a reason to sell.
SHIB 30-day MVRV ratio – The price of the Santiment Shiba Inu is at a micro-scale inflection point as it navigates the neckline and the approaching 50-day SMA, but SHIB is far from becoming an inflated level that would prompt significant selling. For the time being, it’s a technical story until purchasing pressure can disconnect the barrier and allow the Shiba Inu price to move in a more positive direction./n
Read More
