SIREN price withstands 60% correction and still hits new highs; the inverse head and shoulders pattern indicates a potential upward move.

Gate News reports that Siren (SIREN) has surged over 600% in the past 30 days, with the current trading price approaching $1.95. Although recent price action shows a bearish divergence on the 4-hour chart, increasing short-term correction risk, SIREN still maintains a technically intact inverse head and shoulders pattern, indicating a potential upside of up to 287%.

SIREN experienced a sharp drop of 83% from March 22 to 24, falling from $4.71 to $0.79, then quickly rebounded, forming a head and left shoulder structure. The right shoulder is currently forming. If the price breaks the neckline, a significant rally is expected. However, the RSI on the 4-hour chart shows divergence; while the price makes new highs, RSI declines, suggesting weakening momentum and potential short-term downside pressure as the right shoulder forms.

Structurally, this inverse head and shoulders pattern can withstand deep corrections. Even if the price drops 60% from $1.95, as long as it stays above the head at $0.79, the pattern remains valid. On-chain data shows that smart money is gradually exiting, with supply concentrated in a few wallets and exchange balances increasing. This aligns with the RSI divergence signal, indicating short-term selling pressure is building.

The derivatives market shows high short positioning, with total short liquidations over the past week roughly twice that of longs. The most concentrated short positions are around $2.29. If the 4-hour closing price breaks above $2.29, it could trigger short covering and accelerate the move toward the neckline at $2.75. A breakout above $2.75 would complete the inverse head and shoulders pattern, with a target price above the previous high of $4.71.

On the downside, the right shoulder can form above $0.79 without invalidating the pattern. Key support levels are at $1.72 and further at the left shoulder low of $1.59. If the daily close falls below $0.79, the entire pattern would be invalidated, increasing risk.

Overall, despite extreme volatility, SIREN’s technical structure still shows bullish potential. Short-term corrections and bullish-bearish battles coexist. Investors should monitor key price levels for breakouts and support to assess the completion of the inverse head and shoulders and the trend continuation.