Shiba Inu: A Potential Turning Point Amidst Price Struggles
Shiba Inu, once a top-performing cryptocurrency, has faced significant headwinds, with its price plummeting by over 85% and pushing it out of the top 20 by market capitalization. However, a recent technical analysis suggests a potential shift in momentum, indicating that the popular meme coin might be on the cusp of a major turnaround following a crucial price formation at a historical demand zone.
Shiba Inu's Bullish Reversal Signal Emerges
Crypto analyst MyCryptoParadise has highlighted the formation of a classic double bottom pattern for Shiba Inu, which is typically a bullish indicator. This pattern appeared after SHIB tumbled below the $0.000013 mark, specifically around the $0.000012 level. This price point is recognized as a significant historical demand zone, where substantial buying pressure historically emerges for the digital asset. The current setup implies a strong bullish structure that has often preceded major price rallies for other cryptocurrencies, signaling a potential bullish reversal for SHIB, provided bulls can sustain their momentum. For a significant rally to materialize, Shiba Inu's price must first break through the resistance at $0.000013. Following this, the next hurdle is a weaker resistance around $0.00001345. Successfully overcoming these levels would pave the way to a critical zone between $0.00001428 and $0.00001445, characterized by high liquidity. Should SHIB breach this zone with strength, the analyst suggests it could trigger a "sharp rally that leaves latecomers chasing," indicating a rapid ascent.
The Lingering Bearish Threat
Despite the promising bullish signals, the possibility of bears regaining control remains. A bearish scenario could unfold if Shiba Inu fails to maintain its position and closes daily below the critical $0.000012 demand zone. Such a move would effectively invalidate the current bullish momentum and could signal further trouble for the meme coin. A continued decline within its existing descending channel would potentially send the Shiba Inu price back towards the $0.000011 level, undoing the recent recovery hopes.
