Shiba Inu (SHIB) experienced a turbulent period recently, with significant market-wide liquidations and panic selling triggered by geopolitical tensions. As of late June, SHIB is trading at approximately $0.0000107, with a 24-hour trading volume hovering around $242 million. This recent downturn has contributed to a monthly loss of nearly 25%.
Despite these bearish pressures, technical analysts are observing the formation of a double bottom pattern—a classic bullish reversal indicator. This pattern suggests that buyers are defending a crucial support level, potentially setting the stage for a recovery toward $0.000017.
Understanding the Double Bottom Pattern
On the weekly chart, Shiba Inu price is showing signs of stabilization near the $0.0000106 support level. This level has proven historically significant, absorbing selling pressure and facilitating multiple bounce-back rallies over the past year. For traders and long-term holders, this zone may present a strategic entry point.
The double bottom pattern began forming during the downtrend that started in late 2024. SHIB has tested this support level twice, with the most recent bounce occurring in April 2025. That recovery established a neckline resistance at $0.0000173.
If SHIB repeats this historical pattern and bounces from current levels, it could attempt a retest of the $0.000017 resistance. A weekly candlestick close above this neckline would confirm the pattern and potentially initiate a new bullish phase.
Price Targets and Key Indicators
The theoretical target for a completed double bottom pattern sits at $0.0000283, calculated by adding the height of the pattern to the breakout point. A more optimistic target might reach the beginning of the previous downtrend near $0.0000322.
Achieving these targets would require a decisive breakout above the neckline accompanied by increased spot buying volume. Traders should also monitor the Relative Strength Index (RSI), which currently sits at an oversold level of 38. For the pattern to validate, the RSI needs to form higher lows and establish bullish divergence, indicating strengthening buying pressure.
However, not all signals are positive. The 50-day Simple Moving Average (SMA) continues to oscillate above the current price, suggesting short-term momentum remains bearish. Until SHIB clears this moving average—approximately at $0.0000168—bears may maintain control.
It's worth noting that failure to hold the $0.00001 support could invalidate the double bottom formation and potentially trigger a 50% decline, according to some analyses.
Market Sentiment and Funding Rates
Shiba Inu's funding rate—a metric that reflects trader sentiment—has recently turned negative. This typically indicates that more traders are opening short positions, betting on further price declines.
Data from market intelligence platforms shows SHIB's funding rate at its lowest level since April. While this suggests bearish sentiment in the derivatives market, it may also create conditions for a short squeeze. If price begins to recover, short positions could be forced to close, creating additional buying pressure.
This current market dynamic mirrors conditions seen in April, just before SHIB's previous rally to the $0.000017 resistance level.
Strategic Considerations for Traders
For traders monitoring SHIB, several factors warrant attention:
- The $0.0000106 support level must hold to maintain the double bottom pattern
- A break above $0.0000173 would confirm the bullish reversal
- Rising spot buying volume would strengthen the recovery case
- RSI divergence could provide early confirmation of momentum shift
While the technical pattern suggests potential for recovery, market conditions remain volatile. External factors including regulatory developments and broader cryptocurrency market trends could significantly impact SHIB's price trajectory.
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Frequently Asked Questions
What is the significance of the $0.00001 support level for Shiba Inu?
The $0.00001 level represents a critical support zone that has historically triggered buying interest and price recoveries. Holding this support is essential for maintaining the bullish double bottom pattern.
How does the double bottom pattern suggest potential price recovery?
This technical pattern indicates that selling pressure is exhausting at current levels and buyers are stepping in. The pattern projects measured move targets higher once the neckline resistance is broken.
What do negative funding rates indicate for SHIB's price?
Negative funding rates typically show that traders are bearish and opening short positions. However, extremely negative rates can sometimes precede sharp rallies as short positions are forced to cover.
What confirmation signals should traders watch for?
Key signals include a weekly close above $0.0000173, increasing trading volume, and RSI forming bullish divergence. These would strengthen the case for a sustained recovery.
What invalidates the double bottom pattern?
A breakdown below the $0.00001 support level would invalidate the pattern and potentially trigger significant further selling.
How does SHIB's current situation compare to previous recovery patterns?
The current setup shows similarities to the April 2025 recovery, where SHIB bounced from the same support level and rallied approximately 60% to the neckline resistance.
Risk Considerations
While technical patterns provide valuable insights, they are not guarantees of future performance. cryptocurrency investments carry inherent volatility and risk. Market conditions can change rapidly based on regulatory news, technological developments, and broader economic factors.
Traders should employ proper risk management techniques, including position sizing and stop-loss orders, to protect against unexpected market moves. Fundamental analysis should complement technical analysis for a comprehensive investment approach.
The cryptocurrency market operates 24/7, requiring constant monitoring of positions and market conditions. Automated tools and alerts can help traders stay informed about critical price levels and market developments.
Remember that past performance is not indicative of future results, and all trading decisions should be based on individual research and risk tolerance.