Shiba Inu Price Delays Breakout, More Corrections Ahead?

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As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility and trends. The recent surge in Shiba Inu price has caught my attention, but not without a hint of caution. The Inverse Head and Shoulders pattern on its chart is indeed intriguing, suggesting potential gains if key levels are breached. However, the broader crypto market’s current corrections have put a damper on SHIB‘s rally, at least for now.

Over the past month, the Shiba Inu’s price skyrocketed by 20%, drawing significant interest from the market. Even though it has had some minor setbacks, this popular meme-backed cryptocurrency indicates possible future profits. However, amidst corrections across the entire crypto sector, Bitcoin dipped below $100,000. This could mean that Shiba Inu might experience some delays in breaking out, potentially leading to further price fluctuations.

Crypto Market Crash Delays Shiba Inu Price Breakout

Shiba Inu price recently exhibited a bullish inverse head-and-shoulders pattern, nearing a critical neckline retest. However, a sudden market-wide correction disrupted its upward momentum, causing SHIB to fall below key support levels. 

Initially, the value of the cryptocurrency broke through its resistance levels, but due to the current market conditions, its upward momentum has slowed down. On December 10th, the SHIB price stood at $0.00002744 and declined by about 8% in the last 24 hours.

The value of most cryptocurrencies has dropped significantly, causing Bitcoin to fall below $30,000 and Ethereum to dip under $4,000. This massive sell-off has led to huge losses on major trading platforms, indicating high levels of worry among investors. However, analysts warn that a quick rebound might not happen immediately as prices could drop even more before starting to rise again.

SHIB Technical Analysis

On the chart, Shiba Inu’s price structure shows a notable bullish technical configuration: an Inverse Head and Shoulders formation. If crucial resistance levels are surpassed, this pattern may indicate a possible price surge for Shiba Inu forecast predictions.

The Inverse Head and Shoulders pattern, a well-known reversal configuration that usually follows extended periods of decline, features three distinct valleys. These are: a more pronounced central valley (the head) surrounded by two less pronounced valleys (the shoulders). The horizontal or slightly inclined resistance level connecting the peaks between these valleys is referred to as the “neckline.

This pattern indicates that buyers are gradually taking over from sellers at increasingly higher price points, suggesting a transition towards a more optimistic or bullish market outlook.

To predict the possible price increase for a meme coin following an Inverse Head and Shoulder breakout, we first measure the vertical distance from the bottom of the “head” formation to the neckline. This measurement is then added to the level above the neckline where the breakout occurs. This method suggests that the meme coin might see a significant rise in value, given the projected target price lies well above its current levels.

When the price of SHIB surpasses the resistance level at approximately $0.00003269 (which serves as the neckline), it signals the start of a rally. A forceful breakout above this level, coupled with high trading volumes, might lead to a substantial advancement towards the projected target of around $0.00005889.

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2024-12-10 14:45