In recent months, Shiba Inu has experienced a significant price decline, tumbling over 85% and resulting in its removal from the top 20 cryptocurrencies by market capitalization. Despite this challenging trend, analysts are beginning to identify a potential turning point for Shiba Inu as it shows signs of forming a critical price structure at a historically significant demand level.
Shiba Inu Price Shows Bottom Signal
After dropping below $0.000013, the Shiba Inu price has reached a pivotal threshold that indicates a significant price movement may be on the horizon. This was noted by crypto analyst MyCryptoParadise, who highlighted the formation of a classic double bottom pattern. While double bottoms are a common occurrence, the importance of this setup arises from the key level at which it is taking shape.
According to the analysis, this classic double bottom pattern is emerging around the $0.000012 level, which serves as a historical demand zone for Shiba Inu. This zone typically reflects an area where substantial buying pressure tends to occur for the cryptocurrency.
The establishment of this bullish structure in a support zone has frequently led to significant price rallies in the past. This trend suggests the possibility of a bullish reversal, provided that buying momentum can be sustained at this critical level.
Should the price successfully break through the resistance at $0.000013, it will then require overcoming the weaker resistance present at approximately $0.00001345. Achieving this breakthrough is vital because the next significant resistance lies between $0.00001428 and $0.00001445. As noted by analysts, these levels are critical due to their high liquidity. If surpassed with conviction, Shiba Inu could spark a sharp rally, potentially leaving late investors scrambling to enter.
The Bears Still Have A Chance
While the emergence of the double bottom pattern at this demand zone presents a bullish outlook, it does not entirely eliminate the risk of a bear market resurgence. A bearish scenario could materialize if Shiba Inu closes daily below the demand zone at $0.000012.
Such a downturn would invalidate the current bullish momentum and signal potential trouble for the cryptocurrency. Any further declines could lead the price back toward $0.000011, indicating that traders should remain vigilant in monitoring market trends.
