Anonymous crypto analyst pullbacksignal has published a technical analysis of Shiba Inu (SHIB) via TradingView that shows strong upside potential for the cryptocurrency. On the 4-hour chart against Tether (USDT), Shiba Inu price has formed an inverted head and shoulders pattern, traditionally recognized as a bullish reversal signal after a downtrend.
Shiba Inu prices could rise by 45%
The inverted head and shoulders pattern is marked by three troughs, the middle one (the head) being deeper than the sides (the shoulders), and is the opposite of the traditional bearish head and shoulders pattern. The shoulders are ideally of equal depth, and the head is a clear dip below the shoulders.
The key feature of this pattern is the “neckline,” a resistance line drawn by connecting the highs of the two troughs that form the shoulders. A decisive break above this neckline is usually taken as confirmation of the pattern and signals the start of a potential bullish trend.
On his chart, the crypto analyst highlights this breakout signal. The neckline, drawn in red, was broken on Saturday, July 13, with the price closing above the line, signaling bullish momentum.
The left shoulder and right shoulder align at approximately $0.000016, framing a head that dips below $0.000013. This dip, followed by a bounce to the second shoulder, completes the formation and sets the stage for a potential move higher.
Notably, the crypto analyst identifies three potential post-breakout targets that investors could aim for. The first target is at $0.0000209, representing the initial resistance level after the breakout point. The second target is at $0.0000239, which could serve as a mid-term price target after the breakout.
The final target at $0.0000285 reflects the full breakout potential, equivalent to approximately 45% upside from the neckline breakout level.
Moreover, an important element on the chart is the rising blue trend line. This line, starting from the base of the head and going up through the formation of the right shoulder, reinforces the bullish sentiment illustrated by the rising support level.
This trendline not only confirms higher lows that are consistent with a bullish reversal pattern, but also serves as dynamic support that can guide trading decisions. A bounce off this trendline can offer additional buying opportunities, building confidence in the continuation of the uptrend.
Risk management is important for traders looking to capitalize on this setup. The analysis suggests a stop loss at $0.0000140. Additionally, the retracement level marked at $0.0000150 is highlighted as a major support area. If the overall market is about to see another major correction, this price could serve as a final buy-the-dip level.
At the time of publication, SHIB shares were trading at $0.00001925.