Shiba Inu is in the early stages of forming a double bottom pattern on the weekly chart that could trigger a significant bullish rally. This pattern suggests that, after recording a strong bearish trend between November 2024 and April 2025, the price of Shiba Inu has found solid support at $0.0000113.
The price of SHIB is testing the support of $0.0000113 for the second time since the beginning of the bearish correction, which has led to the formation of a double bottom. However, to confirm the maturity of the pattern, the price needs to bounce from this support with strong buying volume and aim for the resistance of the neckline at $0.0000173.
A decisive close above $0.0000173 and subsequent testing of this level as support could trigger a bounce towards the target price of $0.000033. Upon reaching this target in the double bottom pattern, the price of Shiba Inu will have increased by 194% from the current price of $0.000016.
The ADX line, which typically measures the strength of a trend, supports this bullish outlook. This line has a downward slope, indicating that the bearish trend, which has been ongoing for a month, is weakening, increasing the likelihood of a price recovery.
The bullish technical structure appearing on the weekly chart is also supported by a recent analysis stating that the price of SHIB could rebound by 70%, as a drop in open interest paves the way for a healthy bullish move.
This thesis will be invalidated if the On-Balance Volume (OBV) indicator continues to decline, showing a gradual increase in selling pressure. If sellers force the price of Shiba Inu to lose the support level of $0.000016, this popular cryptocurrency could add a zero and likely drop to $0.0000090.
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