Shiba Inu may recover $SHIB
from the recent weak price performance with a 62% rise on the horizon, as recent analysis highlights a bullish formation.
Specifically, Tom Tucker shared this bullish possibility for Shiba Inu in a recent tweet amid broader market capitulation. The temporary drop of Bitcoin below $100,000 extended to Shiba Inu, which collapsed to a daily low of $0.00001004, its lowest price in 16 months.
Tucker noted that the decline stemmed from escalating geopolitical tensions, as the U.S. joined the war between Iran and Israel. While Shiba Inu $SHIB has recovered slightly, it is still down 15% since the beginning of June and 38.7% from the May high of $0.00001765.
The analyst also highlighted an 80% decline in whale holdings, as large Shiba Inu holders exercise caution. Open interest also indicates a drop in leveraged trading, with the index falling to $122.97 million, a figure last seen in early April.
Bullish formation raises optimism
Nonetheless, Shiba Inu may be poised for a radical price change, according to a market analyst. Tucker pointed to the emergence of a bullish structure in his analysis released on June 22, outlining potential confirmations for a possible 62% rise.
To clarify, he indicated that Shiba Inu #SHİB is forming a double bottom price structure on the daily chart, a pattern that often indicates that the asset's price has reached a bottom. The accompanying chart supports this claim, showing that Shiba Inu approached a notable low of $0.00001004 on Sunday.
Double bottom formation for Shiba Inu $SHIB | Tom Tucker
Shiba Inu previously bounced from the area on April 7, recovering from its low of $0.00001028. The momentum from the support area, along with the broader upward trend of the market, led the meme coin to rise by 71.6% to its peak on May 12 at $0.00001765.
Now, Shiba Inu has retested the area, sparking similar optimism. Tucker confirmed that Shiba Inu needs to maintain the critical support area around $0.00001030 to confirm the formation of the double bottom and the resulting 62% bounce.
It is worth noting that the second largest meme coin by market capitalization showed resilience around support. It bounced back by 7.7% from its daily low on Sunday to its current price, as the double bottom pattern became increasingly clear.
If momentum continues, Tucker believes that Shiba Inu will rise by 62%, culminating in a peak of $0.00001752 from the current market price of $0.00001081. This indicates a retest of prices near the May high.
The Shiba Inu team calls for patience
Meanwhile, the Shiba Inu ecosystem team urged supporters to remain calm amid the recent bearish market trend. Lucy, the ecosystem's marketing officer, confirmed that it is not over yet as Shiba Inu has not yet triumphed.
What drives this call for calm is the potential for Shiba Inu to rise to unprecedented prices in the foreseeable future, rewarding those who held through the storm. It is mentioned that the Shiba Inu team has endorsed a target price of $0.01 for the dog-themed meme coin, but acknowledged that this price will take a long time.