The right shoulder of an inverse head-and-shoulders pattern continues to build on the Shiba Inu price chart.
The right shoulder consolidation is currently receiving support from the 50 six-hour simple moving average (SMA), which is going higher.
The bullish SHIB thesis would be nullified by a conclusive closing below $0.00000801, increasing the chances of a more complex bottom.
Shiba Inu prices have been bottoming out for several weeks, displaying an inverse head-and-shoulders pattern and a precise trigger. As SHIB attempts an 80% rally based on the measured move of the pattern, the completion of the right shoulder should be imminent.
Shiba Inu pricing has failed to build a constructive bottoming pattern with a timely entry point after the May 19 fall. Nonetheless, SHIB’s confidence in the prospective inverse head-and-shoulders design with a symmetrical right shoulder inspired by a textbook volume profile has grown since June 29.
Investors should keep an eye on the 200 six-hour SMA as it slides through the right shoulder of the formation as the Shiba Inu price releases the oversold condition on intra-day Relative Strength Indexes (RSI) following the 70 percent jump from the June 22 low to the June 29 high. The problem of successfully resolving the SHIB pattern increases without the support of the strategically essential moving average.
Of course, the 50 six-hour SMA is crossing above the 200 six-hour SMA, generating a bullish Golden Cross pattern on the six-hour SHIB chart, providing some optimism.
The inverse head-and-shoulders pattern’s calculated move target is around 80%, implying a Shiba Inu price of $0.00001720 from the neckline of $0.00000936. SHIB would close barely below the 38.2 percent Fibonacci retracement level of May’s correction at $0.00001754 if the rebound continues.
A gain of 80% in a puzzling cryptocurrency complex would be a significant accomplishment for SHIB. The barrier between $0.00001204 and $0.00001214, which marks the fusion of the May 20 and 24 highs, is a more feasible Shiba Inu price objective. A rally to $0.00001214 would result in a 30% gain from the neckline’s current position of $0.00000936.
Overcoming the slight resistance provided by the June 2 high at $0.00001048 is critical to fully realizing the 30 percent gain.
6-hour chart of SHIB/USD
The bottoming process and the resulting inverse head-and-shoulders pattern will be called into question if Shiba Inu price closes below $0.00000801. A closing below that level would remove the 50 six-hour SMA’s support and, at the very least, suggest a more complex right shoulder and, at worst, a reversion to the head’s lows around $0.00000550.
For the time being, the working hypothesis is for a bullish resolution of the inverted head-and-shoulders pattern and a 30 percent rebound. The narrative is predicated on the superior volume profile underpinning the head and right shoulder formation, relative strength increasing against the cryptocurrency market, and altcoin dominance growing against Bitcoin over the last two weeks. When used together, they resemble a digital asset trader who is sure of himself.
FXStreet’s analysts assess where SHIB could go next, as it appears destined for greater highs./n
