Shiba Inu (SHIB) is showing signs of a bullish rebound after a tough year, forming a double-bottom pattern. Backed by technical data and a booming crypto market, it's catching the eye of investors. Explore this promising opportunity now.
Shiba Inu (SHIB), one of the most popular memecoins, has experienced a significant decline this year, losing billions in market value. However, encouraging signs suggest that the price could soon rebound, offering an interesting opportunity for investors.
Here are 4 main reasons pointing to a potential trend reversal for SHIB :
Technical analysis reveals the formation of a double-bottom pattern on SHIB’s daily chart, a highly bullish reversal pattern. As long as the token remains above the crucial support at $0.00001035, this bullish structure remains intact. SHIB has perfectly bounced from this demand zone, signaling accumulation by smart money.
A confirmed breakout above the neckline at $0.00001755 could pave the way for substantial gains. In the short term, breaking through $0.0000128 would confirm the new bullish momentum. The intermediate resistance sits at $0.000015.
Exchange inflow and outflow data show that investors, particularly whales, are no longer selling their SHIB tokens. The volume on platforms has decreased from 141 trillion to 140.38 trillion, indicating that holders prefer to keep their assets rather than sell them.
Another bullish indicator is the increase in open interest on SHIB futures contracts, reaching $59.2 million on July 2. Historically, such growth in open interest often precedes upward phases in cryptocurrencies.
Finally, Shiba Inu could benefit from a broader crypto market rebound, supported by Federal Reserve rate cuts and a new all-time high for Bitcoin. With an 81% chance of beating its ATH before October, BTC could trigger a wave of buying across altcoins, including SHIB.
Although Shiba Inu has suffered heavy losses this year, these various technical and fundamental elements suggest that the price could soon rebound, offering an interesting opportunity for savvy crypto traders. It remains to be seen whether SHIB will capitalize on this favorable window.
The Fibonacci retracement indicates that SHIB could reach $0.00040 in the coming years. This represents a potential increase of approximately 30 times its current price.
Moreover, a potential Dogecoin ETF could reinvigorate memecoins and consequently SHIB.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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