Shiba Inu ($SHIB) is showing early signs of a potential trend reversal after recent market turbulence. The meme coin currently trades at $0.0000116 with $213 million in daily volume, down 18% monthly. Here's what traders should watch:
Key Support Holds as Double Bottom Pattern Emerges
Technical analysis reveals:
- Strong support at $0.0000106 that has triggered rebounds multiple times since December 2024
- Formation of a double bottom pattern (confirmed if price breaks $0.0000173 neckline resistance)
- Theoretical price target of $0.0000283 upon breakout
- Extreme bullish scenario could test $0.0000322 (the downtrend's origin point)
👉 Discover top AI trading tools boosting crypto recoveries
Market Indicators Show Contrarian Opportunity
Current conditions mirror April 2025's setup before SHIB's 65% rally:
- Funding rates flipped negative (indicating crowded short positions)
- RSI at oversold 38 level
- Potential bullish divergence forming
- 50-day SMA still above price (short-term bearish pressure)
Critical levels to watch:
- Breakout confirmation: Weekly close above $0.0000173
- Downside risk: Loss of $0.00001 support could trigger 50%+ collapse
FAQs: Shiba Inu's Potential Rebound
What triggers SHIB's double bottom pattern?
A decisive close above $0.0000173 with rising spot volume would confirm the pattern, potentially starting a 64%-154% uptrend.
Why are negative funding rates bullish?
Extreme short positions often lead to short squeezes when prices rebound, creating rapid upside momentum.
How does AI factor into SHIB's recovery?
Automated trading tools can amplify buying pressure when technical patterns form, especially in meme coins with strong communities.
What's the worst-case scenario?
Failure to hold $0.00001 support could invalidate the pattern, potentially sending SHIB below $0.000005.
👉 Explore automated trading strategies for volatile markets
Market Psychology and Next Steps
With 25% monthly losses and growing short positions, SHIB appears primed for a rebound. Traders should monitor:
- RSI divergence development
- Spot market buying pressure
- Exchange funding rate normalization
The coming weeks could determine whether Shiba Inu validates its technical pattern or faces deeper corrections. As always in crypto markets, proper risk management remains essential.