A cup and handle pattern is slowly taking shape on the Shiba Inu chart, and the same could have drastic implications on its price. Although the technical pattern pertains to a higher price, investors would have to wait out the second correctional phase before a breakout.
![](https://watcher.guru/news/wp-content/uploads/2022/03/SHIBUSD_2022-03-30_12-56-09-1024x470.png)
![](https://watcher.guru/news/wp-content/uploads/2022/03/SHIBUSD_2022-03-30_12-56-09-1024x470.png)
Price-wise, Shiba Inu has had a topsy-turvy March. During the first half of the month, SHIB declined steadily from $0.00002963 and hit a near 1-month low at $0.00002129. The latter half marked recovery, with SHIB regaining momentum and revisiting its earlier high. Interestingly, a trendline plotted across these highs and lows suggested that an early ‘cup and handle pattern was in formation.
In technical terms, a cup and handle is a bullish development that leads to higher prices. The pattern contains three elements – the cup, handle, and neckline (resistance). Normally, the neckline triggers a minor correction which, in turn, shapes the handle. Now, since SHIB’s handle was yet to form, the next logical phase was the said minor correction.
Bulls Losing Momentum?
![](https://watcher.guru/news/wp-content/uploads/2022/03/SHIBUSD_2022-03-30_12-57-31-1024x470.png)
![](https://watcher.guru/news/wp-content/uploads/2022/03/SHIBUSD_2022-03-30_12-57-31-1024x470.png)
Tuning in on the 4-hour chart showed that bulls were already losing near-term market control. Three lower highs were formed over the past couple of days and the MACD and RSI were starting to favor sellers.
![](https://watcher.guru/news/wp-content/uploads/2022/03/SHIB_Sharpe-Ratio_2022-03-30-1024x524.png)
Furthermore, SHIB’s Sharpe Ratio was also trading at extreme levels. In 2022, this ratio has climbed above 2 only on three occasions, and each time, a correction has followed. The Sharpe Ratio helps determines the risk involved with holding a particular investment. Although a higher value indicates greater returns, it can sometimes lead to profit-booking.
Shiba Inu Direction
If a price decline does follow suit, investors can keep an eye out for near-term supports of $0.00002560 and $0.00002427. However, keep in mind that according to the pattern, the price would eventually break above the $0.00002848 resistance once the correction runs its course.
At the time of writing, SHIB traded at $0.00002728, down by 1.6% over the last 24 hours.