Shiba Inu (SHIB) is at a pivotal technical crossroads, with analysts closely watching a potential trend reversal pattern forming on its charts. The memecoin has constructed an inverse head and shoulders pattern on the four-hour chart, a classic structure that often signals a shift from a downtrend to an uptrend.
The pattern's left shoulder formed near $0.00000616, followed by the head at a multi-year low of $0.00000510 on February 6. The right shoulder subsequently appeared around $0.00000614. The formation indicates that each successive decline has lost strength, suggesting selling pressure is easing and buyers are stepping in at lower levels.
The immediate focus is the neckline resistance zone between $0.0000070 and $0.0000072. A decisive breakout and close above $0.0000072, ideally accompanied by increased trading volume, would validate the bullish reversal setup. Such a breakout could trigger a move toward initial targets of $0.0000078 and $0.0000085, with a stronger rally potentially pushing SHIB toward $0.0000090.
Conversely, the bullish thesis would be invalidated if the price drops below the critical support at $0.0000058, which would reopen a path back toward the $0.00000510 low. SHIB has already dropped over 20% in the past month, and broader market weakness continues to weigh on sentiment, making risk management essential.
Supporting the potential for a shift, analysts note that SHIB recently broke above a previous lower high, rallying to $0.00000725 on February 14, suggesting an early structural change. The asset is now retesting that breakout zone. A successful hold and bounce from this level could strengthen bullish conviction and invite fresh buying.
On longer timeframes, SHIB is showing early signs of stabilization after months of downward pressure. The price action has shifted from aggressive breakdowns to a tighter consolidation pattern, with the appearance of higher lows. This behavior, alongside a notable decrease in the vigor of selling spikes, suggests weaker hands may have exited, allowing for a potential base formation. The compression between price and key moving averages often precedes a volatility expansion, the direction of which hinges on SHIB's ability to maintain its current support base.
