Inverse H&S Pattern Tests Critical Zone – Is a Breakout in Play?

Shiba Inu price has slowed after a strong recovery attempt, with the price now moving back and forth between clearly defined support and resistance. Rather than moving upwards, price action has stalled, indicating a change in momentum-based trading to a more thoughtful structure-based stage. 

The shift is as more macro-level crypto factors are still delicate, particularly to the stability of Bitcoin that still forms the basis of short-term risky conduct. As SHIB tests a critical zone, the market is now focused on whether this recovery structure can hold, keeping the future Shiba Inu price prediction alive.

Shiba Inu Price Forms Inverse Head and Shoulders on 4H Chart

Shiba Inu price on the 4-hour chart has shaped into an inverse head and shoulders pattern. The formation often appears when selling pressure begins to fade rather than expand. The left shoulder developed in early December and then the sellers slightly moved the price down in late December forming the head of the structure. 

The drop that followed, however, was not followed through. The market demand intervened promptly, indicating depletion instead of rejuvenated downside control.

As price rebounded, the right shoulder formed in early January once SHIB price reclaimed the $0.000008 level, flipping a former ceiling into support. There, the momentum of upside diminished around $0.0000090, leading to a pullback toward $0.0000080.

Notably, this action resembles more of digestion than weakness, because price still respects higher lows in the construction. SHIB market value sits around $0.00000837 at the time of press, after a rejection from the key resistance.  

As long as $0.0000080 holds, price action favors another push toward $0.0000090, with a clean break opening the door to $0.00001050 by end Q1, supporting the long-term Shiba Inu price prediction. However, a loss of $0.0000080 would cancel this price structure and hand control back to sellers.

SHIB Derivatives Data Analysis Shows Patience Positioning 

Shiba Inu price behavior lines up with derivatives analytics that suggest caution rather than conviction. The trading volume has decreased 40% to $192.87M , an indication of less reactive trades as the price consolidates. However,  the open interest has increased by 4.56% to $110.66M. The mild rising  open interest shows that traders are still setting up to make a move rather than completely stepping out.

Looking closer, the long-to-short ratios show that there is a moderate long bias and no overcrowding. Binance accounts stand at 1.061 and the optimism of OKX is higher at 2.37, but still controlled. The liquidations figures further support this view. In a 24-hour timeframe, total liquidations hot $326K, with about $320K coming from longs and only around $6K from shorts. 

The imbalance depicts that longs will absorb pullbacks without panicking whereas shorts are reluctant to push lower. As a result, SHIB price continues to consolidate in an orderly manner. But, when $0.0000080 is broken, then that forbearance would tend to vanish, and a more rapid unwind of long exposure will commence.

To sum up, a breakout remains possible for Shiba Inu price, however not guaranteed. The inverse head and shoulders pattern keeps the bullish case intact, as long as the $0.0000080 support holds. 

If buyers take control around the support, SHIB will attempt a move toward $0.0000090 and potential go higher. However, a decisive break below support would invalidate the structure entirely, shifting the long-term Shiba Inu price prediction back into a defensive stance.