Shiba Inu's price formed a cup-with-handle pattern base through July and early August before activating on August 16 with a daily close above the handle high of $0.00000887 level. However, the breakout was met with profit-taking, pushing SHIB price back into the handle of the base and raising the possibility of a bull trap. While the breakout has not been voided, the potential for a run to the measured move target of $0.00001214 level becomes dimmer with each day.

Shiba Inu price questions base legitimacy

On August 16, SHIB price activated a constructive base after several weeks of indecisive action and complicated price structures. The price breakout was met with a -10.75% reversal on August 17, marking the most significant daily decline since June 21. The pullback has put Shiba Inu investors on the defensive with a double-digit loss from the handle high entry price and a possible bull trap.

The SHIB price breakout on August 16 was accompanied by a bullish Golden Cross pattern on the nine-hour chart, indicating a turn in the SHIB price structure at a higher timeframe and creating a new source of momentum and support. However, it was overshadowed by a bearish momentum divergence on the 8 hours Relative Strength Index and the resulting reversal.

The lack of conviction combined with the bearish momentum divergence and the -10.75% reversal have illuminated the importance of the support level outlined by the flattening 50-day SMA at $0.00000728 and the handle low of $0.00000711 level. A drop below $0.00000711 would be a 14.54% decline from the current price. 

A failure to draw support level at the union of the two levels on a daily closing basis would instantly turn the Shiba Inu outlook bearish and expose SHIB price to an immediate retracement to the governing support level created by the May 19 low of $0.00000607. The price of $0.00000607 level was instrumental in halting the selling pressure during the June and July reversals.

The immediate SHIB price pullback on August 17 may have been a reaction to the overbought condition on the RSI, but the longer it persists, the greater the challenge to renew the breakout.

To reactivate the cup-with-handle pattern base release, Shiba Inu's price needs to log a daily close above the August 16 high of $0.00000949. Otherwise, SHIB price speculators will remain locked in a directionless cryptocurrency, further undermining the base authority and the bullish price narrative generated by the 23.30% spike from the May 19 low on August 7.

With Bitcoin and several altcoins printing new rally highs, the frustration grows for Shiba Inu investors. It reflects the uneven performance that can occur in the crypto complex and the enduring challenges implicit in holding outlier cryptocurrencies. Therefore, it complicates the original bullish forecast of a move to the $0.00001214 level as the meme token loses its allure.

Here, analysts evaluate where SHIB price could be heading next as it seems primed for a correction before another run-up.

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