Shiba Inu Eyes Bullish Reversal as It Tests Critical Neckline Resistance

TLDR

• Shiba Inu has formed an inverse head and shoulders pattern on its 4-hour chart.
• The pattern requires SHIB to break above the neckline resistance between $0.0000070 and $0.0000072 for confirmation.
• A successful breakout could push SHIB toward targets of $0.0000078, $0.0000085, and $0.0000090.
• Support is located at $0.0000060, with a major breakdown occurring if SHIB falls below $0.0000058.
• Analysts are monitoring these levels closely to determine if a bullish trend will emerge or if further weakness is possible.

Shiba Inu (SHIB) is showing potential for a trend reversal after forming an inverse head-and-shoulders pattern on its 4-hour chart. The token has experienced a decline of over 20% in the last 30 days, which reflects the broader weakness in the crypto market. However, technical analysis suggests a breakout could signal a shift toward bullish momentum if SHIB manages to break certain key levels.

SHIB Forms Inverse Head and Shoulders Pattern

An inverse head-and-shoulders pattern is taking shape on the Shiba Inu chart, providing some hope for traders. The formation has progressed into its final stages, with the left shoulder, head, and right shoulder already established. The left shoulder formed at approximately $0.00000616, while the head occurred at a multi-year low of $0.00000510 on February 6. The right shoulder recently formed near $0.00000614, completing the necessary structure for the pattern.

For the pattern to trigger a bullish move, SHIB must break above its neckline resistance, which lies between $0.0000070 and $0.0000072. “If the price manages to break and close above $0.0000072, it will confirm the pattern and open the door for further gains,” said a technical analyst. A close above $0.0000072, accompanied by increased volume, would lead SHIB to test higher targets like $0.0000078, $0.0000085, and possibly $0.0000090.

In contrast, the market remains volatile, and SHIB could still face further downside pressure. A critical support level exists at $0.0000060, which could act as a barrier to additional price declines. “If bears continue pushing prices lower, the $0.0000060 support zone should hold,” the analyst explained. However, a break below $0.0000058 would invalidate the bullish pattern, sending SHIB back toward the lows of the head formation around $0.00000510.

A breakdown below these levels would signal that the inverse head-and-shoulders pattern has failed. The resulting price action could lead SHIB into another phase of bearish momentum. If this happens, the cryptocurrency may test new lows, potentially retesting the $0.00000510 area. Traders are now closely monitoring these levels to determine whether the bullish scenario will materialize or if further weakness will dominate.

Other Analysts Support Trend Shift for Shiba Inu

Technical analysts such as SwallowAcademy are also observing a potential shift in SHIB’s price trend. The token recently broke past its previous lower high, rallying to $0.00000725 on February 14. This breakout suggests a possible change in market structure, as SHIB now retests this breakout level. A successful retest could pave the way for a move toward $0.0000085, aligning with the targets of other analysts.

Despite these bullish signs, the overall market sentiment remains fragile, and the possibility of further declines cannot be ruled out. Traders are watching for confirmation of the inverse head-and-shoulders breakout or a potential failure that could send SHIB back toward its previous lows.

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