Shiba Inu’s price performance may depend on whether or not this pattern plays out, according to prominent trader Peter Brandt
Legendary trader Peter Brandt recently posted a Shiba Inu (SHIB) chart, which shows that the meme coin has formed a bullish inverse head-and-shoulders pattern.
The pattern is widely believed to be an indicator of an upcoming trend reversal.
As the name suggests, it is a reverse version of the bearish head-and-shoulders pattern.
As reported by U.Today, Shiba Inu experienced a significant rally, climbing to 1[ads1]2th place on coin raking site CoinMarketCap. Brandt believed that the competition for the inverted head-and-shoulders pattern was a telltale sign that the reversal was on the cards.
However, the latest uptrend had no legs and SHIB erased all its impressive gains in less than a week. The dogecoin competitor plunged lower along with the rest of the major cryptocurrencies, including Bitcoin and Ethereum.
However, Brandt is confident that SHB will be able to regain its bullish momentum if the meme coin manages to stay above the trendline support. In such a case, the recently formed pattern may indicate a buying opportunity. If the meme coin bursts below the neck, it may indicate a buying opportunity.
As of now, bulls seem to have the upper hand. The meme coin has risen almost 4% in the last 24 hours and is currently trading at $0.00001337 on the Bitstamp exchange. Still, the coin is down more than 28% since last Sunday.
A new Shiba Inu-themed card game, enjoying early success in Vietnam, was believed to be the main reason behind Shiba Inu’s recent success.
The cryptocurrency is still significantly down from the record high reached in October last year.