As a seasoned crypto investor with several years of experience under my belt, I have seen my fair share of market trends and price movements. The recent technical analysis of Shiba Inu (SHIB) by the anonymous crypto analyst pullbacksignal has certainly piqued my interest.
An unidentified crypto analyst going by the name pullbacksignal on TradingView has shared their technical assessment of Shiba Inu (SHIB), indicating robust upward prospects for the cryptocurrency. In the 4-hour chart contrasting Shiba Inu with Tether (USDT), an inverted head and shoulders pattern has emerged, which is typically considered a bullish reversal symbol following a decline.
Shiba Inu Price Eyes 45% Rally
As an analyst, I would describe the inverse head and shoulders pattern as follows: This pattern consists of three peaks with the middle one (head) being shallower than the two surrounding ones (shoulders). Contrary to the regular bearish head and shoulders pattern, this setup represents a bullish reversal. The ideal scenario involves equal depth for the shoulders, while the head exhibits a noticeable dip below them.
The “neckline” is a significant aspect of this chart pattern, formed by connecting the peaks of the two troughs that create the shoulders. When the price breaks above this line, it’s often seen as confirmation of the pattern and an indicator of an upcoming bullish trend.
The crypto expert’s graph indicates a breakout point marked by a red-drawn neckline. On July 13, a Saturday, the closing price surpassed this line, implying a surge in buying pressure and a potential bull market trend.
As an analyst, I observe that the left and right shoulders of the price chart are nearly in line with each other at around $0.000016. The head of the chart dips slightly below $0.000013. This dip represents a potential reversal point, and once the price rebounds to the second shoulder, it completes the formation of this pattern. Subsequently, there’s a possibility for upward price movement.
Significantly, the crypto analyst has highlighted three possible price levels that investors may consider reaching out for after a breakout. The first level is at $0.0000209, acting as an initial resistance point beyond the breakthrough point. The second target lies at $0.0000239 and could function as a mid-term objective for the price progression following the break.
As a researcher studying the price movements of this asset, I would describe it as follows: Reaching the goal price of $0.0000285 represents the complete upside potential of the breakout, which translates to approximately a 45% surge from the level at which the price first breached the resistance line.
An significant feature of the graph is the upward-sloping blue trendline. Starting at the chart’s foundation and ascending as it forms the right shoulder, this line reinforces the bullish outlook suggested by an increasing support level.
The upward trendline not only verifies the forming higher lows, which are part of a bullish reversal pattern, but also functions as a flexible foundation for making trading decisions. A rebound from this trendline may create more buying possibilities, thereby bolstering faith in the persistence of the uptrend.
Traders aiming to maximize profits from this configuration should be vigilant in managing risk. According to the analysis, a stop loss is recommended at $0.0000140. Additionally, the pullback level at $0.0000150 is identified as a significant support point. If the market experiences another substantial correction, this price could potentially act as an excellent buying opportunity.
At press time, SHIB traded at $0.00001925.
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2024-07-16 22:34