Shiba Inu price is expected to rise by 38% as a double bottom reversal pattern forms. SHIB shows increasing accumulation while supply on exchanges decreases

SHIB, the second-largest meme cryptocurrency by market cap, has gained 14% in the past five days, rising from $0.000013 to $0.00001478. The bullish rally was likely driven by the broader market recovery following the Federal Reserve’s 0.5% rate cut. Supported by this double bottom reversal pattern, the Shiba Inu price is showing signs of a potential long-term recovery.

Shiba Inu price target surges 38% as bullish reversal takes shape

The cryptocurrency market saw a bullish turn in September as Bitcoin price reversed from $52,500 to $63,456 (up 20%). The revival of recovery sentiment has allowed Shiba Inu price to shift from the current correction to a sideways trend above $0.0000123.

SHIB price has failed in three attempts to break above the bottom support line in the past 11 weeks, which shows that buyers are in an active accumulation zone. The recent reversal has sent the altcoin up 19.82% to trade at $0.0000147 while the market capitalization surged to $8.7 billion.

Daily chart analysis shows the formation of a double bottom reversal pattern, a chart setup that often occurs at major market bottoms.

If the pattern holds, the dog-themed memecoin could be poised to surge by 9.3% before breaking out of the neckline at $0.000016. A potential breakout would strengthen bullish momentum and drive another 25% rally with a target of $0.00002.

According to Santiment, the supply of SHIB on exchanges has steadily declined to 75.3 trillion. This downward trend indicates that tokens are being withdrawn from exchanges, which may indicate that investors are accumulating or selling pressure is decreasing.

Therefore, if the oversupply persists, the Shiba Inu price could fall back to $0.000012 and extend the consolidation trend.