Shiba Inu defends $0.0000106 support for the third time in a year, signaling potential stability amid market turbulence.
A developing double-bottom pattern could trigger a 64% rally if the neckline at $0.0000173 is broken decisively.
Oversold RSI and negative funding rate suggest a possible short squeeze, supporting a bullish case for SHIB recovery.
Shiba Inu (SHIB) showed signs of resilience on June 23, holding above its long-standing support at $0.0000106 despite broad crypto market losses triggered by heightened geopolitical tensions. MEME has a market cap of $1.79 billion and is trading at the price of 0.0000107 with the 24-hour volume of 243 million, according to CoinMarketCap data. SHIB has lost almost a quarter of its value in the last one month.
SHIB Holds Key Support Level
This support level has consistently absorbed selling pressure throughout the past year. SHIB rebounded from this mark in April and again now, creating a potential double-bottom pattern on the weekly chart. The pattern is commonly viewed as a bullish reversal indicator if confirmed.
The neckline of the present pattern is at 0.0000173. A breakout above this resistance, which is confirmed, may result in a large price gradient. According to technical estimates, the token can reach a successful rally of the price to 0.0000283. A prolonged bullish break may even dive into the prices that have not been observed since the onset of the December 2024 collapse, which is approximately at $0.0000322.
Basic Indicators and Price Action
Even after the recovery endeavor, the 50-day Simple Moving Average (SMA) has still been trading above the current price. This represents further bearish impetus in the short run. To gain additional liking, SHIB should close a day above the 50-day SMA, at present around $0.0000168, to avoid the occurrence of a bearish moving average.
The Relative Strength Index (RSI) currently sits at 38, indicating that the asset is nearing oversold territory. Additionally, Shiba Inu's funding rate has turned negative. This reflects a high volume of short positions, which may lead to a short squeeze if the price begins to recover. Similar conditions preceded the SHIB rally in April.
While bulls aim to reclaim higher levels, analysts have cautioned that losing the $0.00001 support could result in a deeper decline. A break below this line would invalidate the double bottom and expose SHIB to further losses.
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