Shiba Inu has been showing signs of preparing for a significant price move, and technical analysis is pointing to a bullish breakout on the macro timeframe. Although Shiba Inu is down by 2.8% in the past 24 hours, a chart pattern that has been forming over the past several months suggests that the token could be on the brink of a powerful rally.
According to crypto analyst Javon Marks, the structure of SHIB’s price action is displaying an inverse head and shoulders pattern, which shows the possibility of a massive 540% price surge.
Inverse Head And Shoulders Signals Explosive Move
The analysis, which was shared on the social media platform X, shows how Shiba Inu has been shaping an inverse head and shoulders structure on the 5-day candlestick chart. Marks noted that the token is still in the “final shoulder areas” of the formation, meaning it has yet to fully confirm the breakout.
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Basically, this means that Shiba Inu is currently in the process of forming the right shoulder before confirming the breakout. The pattern has been forming for more than two years, as it goes as far back as the second half of 2022, where the troughs of the left shoulder formed between July and December 2022. The head of the pattern, which represents the deepest pullback in the structure, took form between September and November 2023 during the bear market low. Since that point, the chart has been unfolding into the right shoulder.
If the pattern plays out as predicted, Shiba Inu could be ready for a run that stretches far beyond its current price range. This inverse head and shoulders bullish setup is one of the most recognized reversal patterns in technical analysis, as it often indicates the end of a prolonged downtrend and the beginning of a major rally.
Price Target Points To 540% Upshoot
Based on the inverse head and shoulders structure above, Javon Marks predicted a price target at $0.000081, which represents a 540% move from the current price of Shiba Inu. However, this is keeping in mind that the breakout has yet to occur, and the analyst’s prediction did not come with a timeline for this breakout. As such, this breakout move would require volume and possibly a bounce from a strong support level to validate the bullish pattern.
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If Shiba Inu were to surge to $0.000081 as predicted, this price range would place the token trading close to its all-time high of $0.00008616, which has stood for almost four years. Interestingly, Marks noted that this move might not end at $0.000081, and it could result in new all-time highs.
At the time of writing, however, SHIB remains far below that projected target, trading at $0.00001263. This reflects a 6.2% decline from its 24-hour high of $0.00001347.
Featured image from Getty Images, chart from Tradingview.com
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