Shiba Inu Forms Potential Reversal Pattern Ahead of Critical Resistance

Shiba Inu's price action has been under pressure for weeks, but recent trends suggest a potential reversal may be underway. The cryptocurrency has formed an inverse head and shoulders pattern on its four-hour chart, which often signals a trend reversal.

The left shoulder of the pattern formed near $0.00000616, with the head following at $0.00000510 on February 6. This level marked a multi-year low for Shiba Inu. The right shoulder later appeared around $0.00000614, indicating that buyers are stepping in after deeper pullbacks.

The neckline of the inverse head and shoulders pattern sits between $0.0000070 and $0.0000072. A strong close above this level would validate the pattern, while a break below $0.0000058 would invalidate it. If bulls clear the neckline resistance, upside targets come into focus, with analysts highlighting $0.0000085 as the next level of resistance.

However, caution remains necessary, as Shiba Inu has dropped over 20% in the past month and broader market weakness continues to weigh on sentiment. Support at $0.0000060 remains critical for buyers to defend, and a successful retest of the breakout zone could strengthen bullish conviction.