Shiba Inu dropped 38% after geopolitical tensions sparked panic across crypto markets.
Technical indicators show extreme oversold conditions, suggesting a potential price reversal.
A double-bottom pattern could trigger a 62% rebound if support holds firm.
Shiba Inu's SHIB recently took a punch to the gut. The token dropped nearly 38% from May highs. This sudden move wasn’t random—it came during a wave of market panic. News of a U.S. airstrike on Iran shook global sentiment. Every risk asset stumbled, and SHIB wasn’t spared. But while fear ruled the moment, technical signs now whisper a different tale. A reversal may be brewing beneath the surface of this red sea.
https://twitter.com/JohncyCrypto/status/1937110923337928736?t=HnKU-L27iHHVGwwFfTSxcw&s=19 Fear Sparks Panic, But Patterns Never Sleep
SHIB hit a low of $0.000011 after the crash. That’s the lowest level in over a month. The market’s reaction to geopolitical conflict wiped out over $12 billion in SHIB’s value. Investors, both whales and retail, ran for the exits..Whale holdings fell over 80% in just 30 days. Smart money pulled back too, dropping 33% to 13.1 billion tokens. Open interest in SHIB futures now sits at $122 million. That’s the lowest since May, down from $300 million. The selloff cut deep. But even in pain, price action speaks. On the daily chart, SHIB has slipped below all moving averages. Momentum indicators, like the RSI and MACD, remain pointed south. Stochastic readings also reflect weakness. Yet this flood of red could be setting the stage for a bounce.
A Double-Bottom Could Rewrite the Script
SHIB now trades at an extreme oversold level on the Murrey Math Lines tool. RSI has touched 30, a historical pivot for past rebounds. Such oversold conditions don’t last forever. At some point, sellers dry up. Buyers step in. Prices respond.Amid this wreckage, a technical pattern starts to form—a potential double-bottom at $0.00001030. This setup suggests two strong support tests.
If price holds above this mark, bulls might return with force. The neckline of this pattern sits around $0.00001765. A rally back to that level would mean a 62% rebound. That’s a bold move, but crypto rarely whispers. If SHIB clears resistance zones and gains volume, that bounce becomes possible. However, risks remain. If the price breaks below $0.00001030, this pattern fails.
In that case, SHIB may fall to $0.0000080. That psychological level could act as the next safety net, but it would mean more pain ahead. Shiba Inu stands at a crossroads. Bears hold short-term control, but the chart shows promise. A double-bottom at $0.00001030 could spark a trend shift. The next few days may reveal if SHIB bounces or dives deeper. Either way, this setup demands attention.
