
Shiba Inu now forms a head-and-shoulders pattern which is known to be a well-known bearish reversal indicator comprising of three peaks.
Overview of the Current Chart Pattern
Recent analysis of Shiba Inu (SHIB) on the daily chart reveals the formation of a head-and-shoulders pattern, a well-known bearish reversal indicator.
This pattern often signals a potential decline in price, making it crucial for traders to monitor the situation closely.
The structure comprises three distinct peaks, with the central peak—known as the “head“—being taller than the two outer peaks, referred to as the “shoulders.”
A defining feature of this formation is the neckline, which acts as a support level for the asset.
Key Support Level and Price Confirmation
Currently, the neckline for SHIB is forming around the $0.00002100 level.
If the price breaks below this critical support, it could trigger a wave of bearish momentum, potentially resulting in further declines.
To estimate the possible price target for this pattern, traders can measure the distance from the neckline to the head’s peak and project that distance downward.

This analysis places the potential price target near $0.00001750, a level that coincides closely with the 200 EMA (Exponential Moving Average)—a significant support area for SHIB.
Market Sentiment and Trading Volume
At present, SHIB remains above the neckline despite some minor bullish attempts to push higher.
However, the prevailing market conditions show low trading volumes, and the Relative Strength Index (RSI) hovers around neutral levels, indicating that the momentum is relatively weak.
These factors suggest a lack of conviction among traders about the asset’s next move.
Recent Developments in the SHIB Community
Moreover, the Shiba Inu community, often referred to as the SHIB Army, has recently witnessed a 300% increase in token burns.
Despite this positive news, there are calls for even larger burns to maintain momentum.
In other notable developments, large holders of SHIB have garnered attention, with reports indicating that five whales now hold a staggering 565 trillion SHIB tokens.
Potential Scenarios Ahead
The uncertainty surrounding SHIB’s trajectory points to traders’ hesitancy.
If SHIB can sustain its position above the neckline and regain bullish traction, it may invalidate the current bearish pattern and aim for resistance levels at $0.00002250 and then $0.00002500.
A successful break above these levels could restore optimism among investors and drive additional profits.
Conversely, if SHIB confirms a break below the neckline, increased selling pressure could steer the asset toward the projected target of around $0.00001750.
Therefore, it is essential for traders to keep a vigilant eye on the $0.00002100 level for any signs of breakout or breakdown in the near future.
A Cautious Approach
Given the current market dynamics and the potential implications of the head-and-shoulders pattern, a prudent approach is warranted.
The next moves by SHIB could significantly affect its immediate future, making it imperative for traders and investors alike to stay informed and prepared for any changes.
As always, conducting thorough research and consulting with financial experts is recommended before making any investment decisions in the volatile cryptocurrency market.
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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets
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