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Here is your answer in 7-1-7...
After the ball is ready for play and before the snap begins, no false start shall be made by any A player. It is a false start if:
a. A shift or feigned charge simulates action at the snap.
b. Any act is clearly intended to cause B to encroach.
c. Any A player on his line between the snapper and the player on the end of his line, after having placed a hand(s) on or near the ground, moves his hand(s) or makes any quick movement.
So since the "covered" lineman does not have a hand near the ground, he may shift so long as it doesn't simulate action at the snap. You were exactly right.
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