Shiba Inu’s 18% Monthly Price Gain Signals Potential Double Bottom Rally
Shiba Inu (SHIB) is experiencing a significant price rally, potentially forming a bullish double bottom pattern. This month’s 18% increase, its best performance since November, follows Bitcoin’s surge to all-time highs above $118,000, reflecting increased risk appetite within the broader crypto market. The rally is supported by robust trading volumes and accelerated token burning, removing a substantial portion of the circulating supply.
Over the 24-hour period ending July 11th, SHIB saw a 7% surge, rising from $0.000012476 to $0.000013399 on exceptionally high volume (1.904 trillion tokens). However, a 1% decline occurred in the final hour, attributed to liquidation pressure. Despite this minor correction, over 9.5 million SHIB tokens were burned, although the price impact remained muted.
Key levels of support and resistance have emerged. The breakout above $0.000013110, on extremely high volume, established a new volume-supported resistance level. A support zone has formed around $0.000013230, with resistance near $0.000013580. Continued upward momentum could push SHIB towards the psychological level of $0.000014000.
The double-digit monthly gain builds upon the successful defense of the April low around $0.00001005, suggesting a potential double bottom pattern on the daily chart. This pattern, characterized by two similar troughs followed by a recovery, is confirmed by a price breakthrough above the trendline connecting the recovery’s high point. For SHIB, this resistance is the May high of $0.00001764. A decisive move above this level would strongly signal a major bull run.
The current rally, driven by increased trading activity and token burns, combined with the potential double bottom pattern, paints a positive picture for SHIB’s short-term outlook. However, investors should remain cautious and consider the inherent volatility of the cryptocurrency market. The sustained upward momentum, if it continues, could push SHIB towards significantly higher price targets. Careful monitoring of key support and resistance levels is crucial for informed investment decisions.
