Shiba Inu Coin ($SHIB) has recently encountered difficulties due to panic selling triggered by U.S. strikes on Iran and mass liquidations in the crypto market. As of today, June 24, the price of Shiba Inu Coin is $0.0000116, with a 24-hour trading volume of $213 million. The recent decline has brought Shiba Inu Coin's monthly losses to 18%.
Shiba Inu Coin price recovery and bullish pattern emergence
According to TradingView charts, after hitting the support level of $0.0000106, Shiba Inu Coin is attempting to recover its losses. This support has absorbed selling pressure over the past year, supporting multiple rebounds and recoveries, making it a good entry point for buyers speculating on a rebound. In the downtrend that began in December 2024, Shiba Inu Coin has held this support twice, forming a double bottom pattern. The last rebound from this support occurred in April 2025, which led to the creation of neckline resistance at $0.0000173.
If Shiba Inu Coin's price repeats historical trends and rebounds, it will attempt to retest $0.000017. A decisive weekly candle close above this neckline will confirm the double bottom pattern. To achieve this development, the SHIB token needs to rise 64% from its current price. The theoretical target for the double bottom pattern is $0.0000283, derived by adding the distance between the bottom and the neckline to the breakout point. Currently, an exaggerated bullish target would be the starting point of this downtrend, located at $0.0000322. In both scenarios, a decisive close above the neckline resistance, along with a surge in spot buying volume, could help Shiba Inu Coin reach the aforementioned price targets.
For the double bottom to form and send the same rebound signal as the price formation of Shiba Inu in April, the RSI also needs to generate higher lows and form a bullish divergence to confirm that buyers are stepping in. Currently, the RSI is at an oversold level of 38. However, it is worth noting that Shiba Inu's 50-day simple moving average is still oscillating above the price, indicating that short-term momentum remains bearish. Until Shiba Inu's price breaks above the range of $0.0000168, bears may still maintain control. If Shiba Inu Coin loses the support level of $0.00001, it will face a risk of collapse by 50% or more. Such a trend would invalidate the formation of the double bottom.
Shiba Inu Coin's funding rate has flipped to negative
An indicator used to measure market sentiment, the funding rate of Shiba Inu Coin has flipped to negative. When this happens, it usually brings a bearish narrative to the price prediction of Shiba Inu Coin, as more traders bet that the price will fall by going short. According to Santiment data, the funding rate of Shiba Inu Coin has dropped to its lowest level since April, indicating that short positions are overly crowded. This could be bullish, as when these short positions are closed amid a price rebound, it will trigger a surge in buying pressure.
Moreover, the negative funding rate also reflects the market conditions of April, before which the price of Shiba Inu Coin had risen to the neckline resistance level of $0.000017. In summary, after a decline of over 25% in a month, Shiba Inu's price may be seeking recovery. With a double bottom pattern gradually forming and an increase in short positions, a rise to $0.000017 could be achieved in the short term.