Shiba Inu price has formed a double-bottom pattern, pointing to a strong rebound in the coming days. SHIB, the second-biggest meme coin, was trading at $0.0000111 today, June 17, up slightly above the year-to-date low of $0.00001025.
Shiba Inu Price Double-Bottom Pattern Forms
Shiba Inu price has crashed by nearly 70% from its highest point in November last year. It remains below the 50-day and 100-day moving averages, making it easier for one to predict that the downtrend will continue.
However, a closer look shows that the SHIB price has formed a double-bottom pattern at $0.00001030. A double-bottom is one of the most bullish patterns in technical analysis and is characterized by a horizontal support and a neckline, which, in this case, is at $0.00001760.
Therefore, it is likely that the Shiba Inu price will bounce back in the near term, with the next target to watch being the neckline at $0.00001760, which is approximately 70% above the current level.
A drop below the double-bottom point at $0.00001030 will invalidate the bullish Shiba Inu price forecast.
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SHIB Price Harmonic Pattern Signals a Breakout
Meanwhile, the weekly chart points to a strong rebound. In the first place, the token has remained above the ascending trendline that connects the lowest swings since July 2023.
At the same time, it has formed the highly bullish XABCD harmonic pattern that often leads to more gains. The first XA section occurred between March and August 2024, while the second phase took place between August and December.
The other phase was between December and April. It is now in the early stages of the final phase, which will push the Shiba Inu price to $0.0000464, its highest point in 2024 and 285% above the current level.
The initial target for this breakout will be at $0.00003342, the highest level in November last year.
The bullish SHIB price forecast will become invalid if it drops below the key support at $0.000010.
Key Catalysts for SHIB Coin
The main catalyst for Shiba Inu and other altcoins is that conditions are now conducive for a major crypto market rally. First, the US stock market has surged, with the Nasdaq 100 and S&P 500 indices reaching a record high this week, a sign that market participants have adopted a risk-on sentiment.
Second, there are indications that the Bitcoin price is poised for a strong bullish breakout. It formed a cup-and-handle pattern and is now forming the handle section. Together with the rising Bitcoin ETF inflows, there is a likelihood that the coin will surge in the coming months.
Therefore, a strong Bitcoin price breakout is likely to lead to further gains in altcoins, as it has in the past.
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