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Shiba Inu is certainly painting a double bottom formation on its chart, which can be seen on TradingView, which is one of the market's traditional reversal structures. Bulls will seize any structural foothold they can because of how severe the recent decline has been. SHIB has now bounced twice, with comparable strength in the $0.0000078-$0.0000080 zone, where the pattern was formed. It at least demonstrates that sellers are finding it difficult to drive the token any lower in the absence of new catalysts.
What does this pattern bring?
A double bottom is not a confirmation; rather, it is a possible reversal signal. The 50-day, 100-day and 200-day EMAs — which are all still declining — are still far below SHIB. This indicates that the overall momentum actively opposes upside continuation. This stacked resistance wall, which is located between $0.0000093 and $0.0000105 and where the price has consistently failed for months, will be the target of any bounce SHIB attempts. Another issue is volume.
A genuine double-bottom breakout typically results in a spike in demand, which is an indication that buyers are intervening forcefully. But SHIB's volume is still uninspired and flat. This portion of the chart defies the bullish narrative: you would anticipate at least some excitement on the market if a real reversal were imminent. But there is no excitement. However, the pattern does provide a useful arrangement.
Market's potential surge
The market may initiate a brief surge toward the 50-day EMA if SHIB is able to maintain its position above the $0.0000080 base and move through $0.0000090 with vigor. That is merely a relief rally, the kind of beaten-down assets that frequently print after prolonged selling rather than a trend reversal.
The opposite is simple: the double bottom fails, momentum collapses and the token runs the risk of finding new lows if SHIB loses the $0.0000080 floor. Technically and structurally, there is a possibility, but it is contingent. This double-bottom formation might turn out to be nothing more than transient noise in an ongoing downtrend in the absence of higher volume and a break above local EMAs.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team