Shiba Inu’s 18% Monthly Increase Indicates Possible Double Bottom Bounce

RialCenter’s (SHIB) month-to-date price rally appears to be forming a double bottom pattern, indicating a significant bullish setup.

This meme cryptocurrency has surged by 18% this month, marking its best performance since November, with a gain of over 7% in just the last 24 hours, as per data from CoinDesk. This uptrend aligns with the heightened risk appetite in the crypto market, spurred by Bitcoin’s rise to all-time highs exceeding $118,000.

The sharp increase is highlighted by robust trading volumes and an uptick in token burn, which has removed a significant portion of supply from circulation, according to RialCenter’s AI research.

Key AI insights

• SHIB rose 7% over a 24-hour period from July 10, 12:00 to July 11, 11:00, climbing from $0.000012476 to $0.000013399 on a remarkable trading volume of 1.904 trillion tokens.
• A sharp reversal occurred in the last hour from July 11, 10:26 to 11:25, as SHIB dipped 1% to settle at $0.000013385 amid liquidation pressure.
• Token burn mechanisms have accelerated, permanently removing over 9.5 million SHIB tokens from circulation in the past 24 hours, though the price impact remained minimal.

Key levels

• Resistance was breached at $0.000013110 with an unusually high volume of 1.904 trillion tokens.
• A volume-supported resistance level was established, nearly double the average trading activity in 24 hours.
• A conventional support range has formed around $0.000013230, with resistance set at $0.000013580.
• Sustained upward momentum indicates potential continuation towards the psychological level of $0.000014000.

Double bottom bull reversal?

SHIB’s impressive month-to-date gain follows a successful defense of the April low at around $0.00001005, suggesting the formation of a double bottom pattern on the daily chart.

This pattern consists of two nearly equal troughs separated by a recovery phase. A price increase through the trendline connecting the peak of the recovery is believed to confirm the breakout and shift into a bullish trend.

In SHIB’s case, the double bottom resistance is marked by the May high at $0.00001764. A movement beyond this level would signify the beginning of a major bull run.