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On the daily chart, Shiba Inu appears to form a head and shoulders pattern, which is a bearish reversal indicator that frequently indicates a possible decline in the future. There are three vertices in this formation, the middle vertex (the head) being higher than the two lateral vertices (the shoulders) and a neckline serving as a level of support.
The SHIB neckline appears to be developing near the $0.00002100 level. Price confirmation of the head-and-shoulders pattern could lead to additional bearish momentum if it breaks below this crucial support. Measuring the distance from the neckline to the crown of the head and projecting it downward would give the target price for this model.
This places a possible target in the $0.00001750 range, which is very close to the 200 EMA, which is a powerful support level for SHIB. Currently, SHIB maintains its position above the neckline despite slight bullish attempts to break higher. Nonetheless, low trading volumes and RSI levels hovering around neutral territory – neither significantly overbought nor oversold – indicate that momentum is weak.
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This reflects the hesitation of traders and the unclear trajectory of the asset. SHIB can invalidate the downtrend and target resistance at $0.00002250, then $0.00002500 if it can hold above the neckline and regain some ground. A break above these levels could reignite optimism and generate additional profits.
On the other hand, a confirmed breakout below the neckline could generate more bearish momentum if selling pressure increases, pushing SHIB towards the pattern’s price target, which is around $0.00001750. Traders should closely monitor the $0.00002100 level at the moment for indications of a breakout or breakdown. All things considered, caution is warranted as SHIB’s next course of action could be crucial to its immediate future.
Disclaimer: The opinions expressed by our editors are their own and do not represent those of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.