In a twist that could reignite interest in the once high-flying Shiba Inu coin, the digital currency has shown signs of a potential comeback. After plummeting over 85% from its peak and slipping out of the top 20 cryptocurrencies by market cap, the meme coin now flirts with a pivotal price formation at a long-standing demand zone. Analysts suggest this move might herald a bullish rally, but there’s more to this story than meets the eye.
Shiba Inu’s Potential Rebound
Cryptocurrency analyst, known as MyCryptoParadise, recently highlighted a noteworthy development: the formation of a double bottom pattern around the $0.000012 mark. This zone, often bustling with buying interest, has historically acted as a springboard for price rallies in the crypto world. “This isn’t just any double bottom,” the analyst noted. “It’s forming at a crucial support level, hinting at a possible bullish reversal.” This development aligns with recent trends in the crypto market, such as Shiba Inu forming its first 2025 Golden Cross, which could further bolster bullish sentiment.
For those unfamiliar with double bottoms, they’re a classic technical analysis pattern indicating that an asset might be gearing up for an upward price movement. In Shiba Inu’s case, breaking past the $0.000013 resistance level could be the key to unlocking further gains. Beyond this, the next hurdles lie between $0.00001428 and $0.00001445, where liquidity is high. If SHIB can navigate these waters with strength, the stage could be set for a significant rally.
Bearish Winds Still Loom
Yet, it’s not all sunshine and rainbows for Shiba Inu holders. The optimism surrounding this potential turnaround is tempered by the lurking threat of a bearish scenario. Should the price fail to uphold the $0.000012 support, a descent back to $0.000011 looms ominously. This would invalidate the current bullish momentum and reinforce the downward trend that has haunted SHIB for months.
This bearish prospect isn’t lost on traders. A daily close below the demand zone could spell trouble, and further dips might follow as Shiba Inu struggles within its descending channel. The delicate balance between bulls and bears underscores the uncertainty that still shrouds the coin’s future.
Historical Context and Market Dynamics
For those who have followed Shiba Inu’s rollercoaster journey, this potential turnaround is reminiscent of past recoveries. The coin, initially dismissed as a mere joke, skyrocketed in popularity and price, driven by community support and social media buzz. However, as market dynamics shifted, so did its fortunes. This is similar to other recent market movements, such as whales dumping XRP en masse, which also reflect shifting investor strategies.
The current double bottom formation marks the first significant technical signal for SHIB in recent memory. In a market teeming with volatility, such technical indicators often serve as beacons for traders. The question is: can the meme coin capitalize on this pattern, or will it falter under renewed selling pressure?
Looking Ahead
As September unfolds, Shiba Inu stands at a crossroads. The path it takes will depend on both market sentiment and broader cryptocurrency trends. Will the bulls muster the strength to push past resistance levels and trigger a rally that leaves latecomers in the dust? Or will the bears seize control, dragging the price back into the depths?
For now, traders and investors alike are watching with bated breath, eyes fixed on the charts and ears tuned to market whispers. The unfolding drama around Shiba Inu is a testament to the unpredictable nature of cryptocurrency markets, where fortunes can change in the blink of an eye. As always, the only certainty is uncertainty—and perhaps, that’s what keeps the crypto world so captivating.
Source
This article is based on: Shiba Inu Price Forms Double Bottom At Demand Zone — What To Expect
Further Reading
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- Bitcoin bull market will be ‘over’ if $100K BTC price is lost: Trader
- Bitcoin Price Analysis Reveals Market-Bottom Cues, but $113,500 Remains the Key Test
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
