Find out if Shiba Inu can bounce back to $0.000017 as bullish reversal patterns emerge and funding rates turn negative?
Shiba Inu (SHIB) had a rough weekend, as US strikes against Iran sparked panic selling and massive liquidity in the crypto market. Shiba Inu price traded at $0.0000107 today on June 23rd, with a 24-hour trading volume of $242 million. The recent decline brings SHIB’s monthly loss to 25%.
Despite the bearish headwinds, a double-bottom pattern, which usually indicates a bullish reversal, is taking shape as the bulls defend a key support level and target at $0.000017.
Shiba Inu price recovery is seen in the form of a bullish pattern.
The weekly chart shows that Shiba Inu price is trying to cover losses after reaching the support level at $0.0000106.
This support has absorbed the selling pressure for the past year, supporting multiple bounces and recovery releases and could serve as a good entry point for buyers speculating on a bounce.
Since the downtrend that started in December 2024, $SHIB has defended this support twice, resulting in a double bottom pattern.
The last time it bounced off this support was in April 2025, with the resulting rally creating a neck resistance at $0.0000173.
If the price of this top meme coin repeats the historical trends and bounces, it will try to retest $0.000017.
A decisive weekly candlestick close above the aforementioned neckline would confirm the double bottom pattern. For such a development, the $SHIB token would need to rise 64% from its current price.
The theoretical double bottom pattern target is $0.0000283, which is achieved by adding $0.0000173 to the breakout point, the distance between the bottom and the neckline.
An exaggerated bullish target would be the start of this downtrend at $0.0000322. In either case, a decisive close above the neckline resistance, along with an increase in spot buying volume, could help SHIB reach the above price targets.
To form a double bottom and signal the same recovery that SHIB price made in April, the RSI also needs to make a higher low and make a bullish divergence to confirm that buyers are entering. Currently, the RSI is sitting at the oversold level of 38.
However, it is very important to note that SHIB's 50-day simple moving average (SMA) is still moving above the price, which is a sign that short-term bearish momentum remains.
As long as the price of Shiba Inu does not break above this level at $0.0000168, bears may remain in control.
Furthermore, analysis by experts indicated that $SHIB has a 50% crash risk if it loses the support level at $0.00001. Such a move would invalidate the formation of a double bottom pattern.
SHIB funding rate becomes negative.
Shiba Inu’s funding rate, a metric used to gauge market sentiment, has turned negative. When this happens, it creates a generally bearish narrative for Shiba Inu price forecasts as more traders are betting that opening a short position will cause the price to decline.
SHIB's funding rate fell to its lowest level since April, indicating heavy short positioning, according to Santiment data.
This can be bullish because when these short positions are closed in the event of a price recovery, it will trigger an increase in buy-side pressure.
Furthermore, the negative funding rate also reflects market conditions in April, before Shiba Inu price reached the neck resistance at $0.000017.
In summary, Shiba Inu's price is looking to recover after losing more than 25% of its value in just one month.
As a double bottom pattern takes shape and short positions increase, a recovery of $0.000017 could be on the cards.
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