#shibaInu ($SHIB ) has experienced a significant market correction, falling nearly 38% from its May highs amid heightened geopolitical tensions. The downturn was largely triggered by reports of a U.S. airstrike on Iran, which spurred broad risk-off sentiment across global markets. SHIB was not immune to the volatility, with its price plunging to a monthly low of $0.000011 and wiping out over $12 billion in market capitalization.
Market Panic Pressures #SHİB
The impact of the geopolitical shock was felt widely across the crypto space, with Shiba Inu particularly affected. Key metrics reveal the scale of investor retreat:
Whale holdings in SHIB have dropped over 80% in the past 30 days,
Smart money positions declined 33% to 13.1 billion tokens, and
Open interest in SHIB futures now stands at just $122 million, down from $300 million in May.
Technically, SHIB has fallen below all major moving averages on the daily chart. Momentum indicators—including the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator—continue to reflect bearish sentiment, reinforcing short-term downside risk.
Double-Bottom Pattern Suggests a Potential Reversal
Despite the sharp decline, several technical signals are pointing toward a potential reversal. Notably, SHIB has entered extreme oversold territory, with the RSI touching the critical 30 level—a historical inflection point for previous rebounds. Additionally, the Murrey Math Lines tool also places SHIB at a deeply oversold range.
Amid this technical weakness, a double-bottom pattern appears to be emerging near the $0.00001030 support level. This formation suggests the market is testing a strong floor. Should this support hold, a recovery could materialize with the pattern’s neckline projected around $0.00001765. A breakout above this neckline could trigger a 62% rally, potentially reversing much of the recent losses.
Risks to the Downside Remain
However, this bullish thesis is contingent on SHIB maintaining support above $0.00001030. A decisive breakdown below this level would invalidate the double-bottom setup and could open the door to further losses, potentially pushing the token toward the $0.00000800 psychological support level.
Outlook
Shiba Inu finds itself at a pivotal technical juncture. While short-term market sentiment remains bearish, chart patterns and momentum indicators suggest a possible trend reversal is forming. The coming sessions will be critical in determining whether SHIB confirms the double-bottom pattern or continues its downward trajectory. Traders and investors alike should monitor this setup closely.
