Is it possible for Shiba Inu's price to rebound to $0.000017 with the emergence of a bullish reversal pattern and negative financing rates?
Shiba Inu (SHIB) experienced a tough weekend as the U.S. strikes on Iran triggered panic selling and massive liquidations in the cryptocurrency market. On June 23, Shiba Inu's price was $0.0000107, with a 24-hour trading volume of $242 million. The recent decline has led to a monthly loss of 25% for SHIB.
Despite facing bearish resistance, as bulls defend key support levels and aim for $0.000017, a double bottom pattern, which usually signals a bullish reversal, is forming.
With the formation of a bullish pattern, Shiba Inu's price is about to rebound.
The weekly chart shows that Shiba Inu's stock price is trying to recover after hitting the support level of $0.0000106. This support level has absorbed selling pressure over the past year, supporting multiple rebounds and recovery trends, and may become a good entry point for buyers betting on a rebound.
Since the downtrend began in December 2024, SHIB has twice held this support level, forming a double bottom pattern. The last rebound from this support level occurred in April 2025, with the subsequent rebound ultimately forming a neckline resistance level at $0.0000173.
If the price of this leading meme coin reflects historical trends and rebounds, it will attempt to retest $0.000017. If the weekly closing price is definitively above the aforementioned neckline, it will confirm the double bottom pattern. To achieve this development, the SHIB token needs to rise 64% from its current price.
The theoretical target price for the double bottom formation is $0.0000283, derived by adding the distance from the bottom to the neckline to the breakout point of $0.0000173. An exaggerated bullish target price would be the starting point of this downtrend at $0.0000322. In both cases, if the SHIB token's closing price is definitively above the neckline resistance level, along with a surge in spot buying volume, it could help it reach the aforementioned price targets.
To form a double bottom and signify a recovery similar to April's SHIB price, the RSI also needs to generate higher lows and create a bullish divergence to confirm that buyers are stepping in. Currently, the RSI is at an oversold level of 38.
However, it is crucial that SHIB's 50-day simple moving average (SMA) continues to fluctuate above the price, indicating that short-term momentum remains bearish. Shorts may still dominate until Shiba Inu's price breaks above the level of $0.0000168.
Furthermore, CoinGape's recent analysis indicates that if SHIB breaks below the support level of $0.00001, its price will face a 50% crash risk. Such a movement would invalidate the formation of a double bottom pattern.
SHIB financing rate has turned negative.
The financing rate for Shiba Inu (an indicator of market sentiment) has turned negative. When this occurs, it typically creates a bearish tone for Shiba Inu's price prediction, as more and more traders bet on price declines by opening short positions.
According to Santiment's data, SHIB's financing rate has dropped to its lowest level since April, indicating an excessive crowding of short positions. This could be good news, as once the price rebounds, these short positions will be closed, leading to a surge in buying pressure. Additionally, the negative financing rate also reflects the market conditions prior to the Shiba Inu price rebound to the neckline resistance level of $0.000017 in April.
In summary, after falling over 25% in just one month, Shiba Inu's price may be recovering. With the formation of a double bottom pattern and an increase in short positions, the price is expected to rise to $0.000017.