Shiba Inu Price Delays Breakout, More Corrections Ahead?

After a massive surge in the past month, the Shiba Inu price rose by 20%, capturing market attention. Despite minor corrections, the popular meme-based crypto signals potential future gains. Meanwhile, the broader crypto market faces corrections, with Bitcoin falling below $100,000. This suggests that SHIB may experience breakout delays, potentially leading to more price adjustments.

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. 

The cryptocurrency briefly surged past resistance points, yet current market dynamics have stalled its rally.  As of 10th Dec, the SHIB price hovered at $0.00002744, decreasing 8% in the past 24-hours.

The broader crypto market has faced significant pullbacks, with Bitcoin trading below $30,000 and Ethereum slipping under $4,000. Liquidations across major exchanges totalled billions, underscoring investor panic. Analysts caution that a swift recovery appears unlikely as prices may consolidate further before resuming upward trajectories.

SHIB Technical Analysis

The Shiba Inu price forms a significant bullish technical pattern on its chart: an Inverse head-and-shoulders pattern. If key levels are breached, this pattern could signal a potential breakout for Shiba Inu price prediction.

The Inverse Head and Shoulders pattern is a classic reversal formation often appearing after prolonged downtrends. It consists of three distinct troughs: a deeper central low (head) flanked by two shallower lows (shoulders). The horizontal or slightly sloped resistance line connecting the peaks between these troughs is termed the “neckline.”

This pattern suggests sellers lose control as buyers step in at progressively higher levels, signalling a shift towards bullish sentiment.

The theoretical price target for an Inverse Head and Shoulder breakout is determined by measuring the distance from the lowest point of the head to the neckline. This value is then added to the breakout level above the neckline. This calculation points to a potential rally for the meme coin, with the projected target offering a substantial upside from the current levels.

Shiba Inu Price Chart: TradingView

A rally begins once the price decisively breaks above the neckline resistance. For SHIB, this critical neckline level lies near $0.00003269. A confirmed breakout above this zone, accompanied by strong trading volumes, could trigger a significant move toward the target of $0.00005889.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.