Known for his accurate Bitcoin predictions, the analyst expects Shiba Inu (SHIB) collapse if its price drops below July lows.
Senior analyst SHIB updates bearish expectations
Veteran futures trader Peter Brandt recently pointed out a pattern on the SHIB chart. As Kriptokoin.com, we have transferred the analysis in this article. Brandt has now updated his SHIB technical analysis for the second time this month. This time, he says, if SHIB drops below the July low of $0.00001, it will collapse drastically. However, Brandt added that an increase in SHIB price above the level would “confirm the opposite.” Brandt notes that the head-and-shoulder formation is a discontinuity.
Hey @jonbking check this chart out. A decline below Jul lows would not be pretty, while a turn up in price would confirm the inv. H&S
In absentia pic.twitter.com/LekZ4inALZ— Peter Brandt (@PeterLBrandt) August 24, 2022
Peter Brandt’s last interest in Shiba Inu
Brandt’s recent interest in the Shiba Inu comes as a surprise to many, given that he generally focuses on Bitcoin, the world’s largest cryptocurrency by market capitalization. Brandt noted that the Shiba Inu should hold above the 0.00001310 neckline support, which indicates a buy signal. However, if the trendline is breached, Brandt says, investors may be forced to sell the crypto asset to protect themselves from significant losses.
Is everything so negative for the Shiba Inu?
The Shiba Inu price swelled by about 35% on a single daily candlestick on August 14. It then recorded a long foothold at $0.0000180. After the sell-off on August 19, Shiba is likely to test the $0.0000118 region, which acts as a support base. Analyst Akash Girimath says that since this region is the highest volume level, it will attract new buyers.
Such a development will trigger a minor rally that SHIB’s market participants can benefit from. The resulting uptrend could push the Shiba Inu price to either form a double top at $0.0000180 or push it to form a swing high of $0.0000200. This move marks a 50% rise, contrary to what Brandt had expected.
On the other hand, if SHIB fails to hold above the POC of $0.0000118, it will mean increased seller activity. In such a case, a daily candlestick close below the above-mentioned level will invalidate the SHIB recovery outlook. It will also potentially trigger a 10% drop to retest $0.000106.
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