A double bottom pattern can be seen forming on the daily chart, suggesting that Shiba Inu could be signaling a reversal. The catalyst that SHIB investors have been waiting for could be this traditional bullish pattern, which is often associated with a market turnaround.
After a long decline, SHIB is currently trading at around $0.00002177, indicating that it is stabilizing. The asset has remained stable over the past few trading sessions, with a price of $0.00002105 and is testing a key support level near the 100 EMA. Although SHIB seems to have held its ground so far, if it fails to maintain this level, it may retest the 200 EMA near $0.00002054.
If SHIB breaks above important resistance levels, the double bottom pattern suggests that it may be able to reverse its negative momentum. The 50 EMA or $0.00002350 is the first hurdle. A more significant resistance area is located at $0.00002585. If these levels are cleared, a 50% rally is possible, which could take SHIB back to its recent highs of around $0.00003500. But volume remains an issue.
There is minimal buying pressure at the moment, which begs the question: do bulls have enough momentum to overcome the resistance level. In order to validate the double bottom pattern and start a long-term recovery, the volume must increase significantly. As an initial sign of a reversal, SHIB investors should wait for a clear breakout above $0.00002350.
A break below $0.00002105 could invalidate the bullish setup and indicate further weakness. Finally, the Shiba Inu’s double bottom pattern suggests a possible trend reversal. Although a 50% rally is possible, traders should proceed with caution and closely monitor volume levels and important price areas to support a bullish view.