Shiba Inu (SHIB) is drawing renewed attention in the crypto market after forming a double bottom pattern near the $0.00001030 level, a classic technical signal that often precedes a price rebound. This development comes as the SHIB community has burned over 410 trillion tokens, effectively reducing the circulating supply by approximately 41%. Such a significant reduction in supply, combined with technical support, is fueling analyst expectations for a potential move toward $0.00001765 and possibly higher .
Technical Analysis: Double Bottom and Consolidation
The double bottom pattern, identified around $0.00001030, marks a historically strong support zone for SHIB. This formation is typically seen as a bullish reversal signal, suggesting that the recent downtrend may be losing steam. If SHIB can maintain this support and break out of its current consolidation phase, analysts are eyeing a target near $0.00001765, with some even projecting a possible move above $0.00003 if momentum continues to build .
Recent price action shows SHIB trading around $0.00001040, with the token having previously declined from $0.00001765 in May. Technical indicators like the RSI and Stochastic Oscillator have reached oversold levels, hinting at a potential recovery. However, SHIB remains below its key moving averages, indicating that traders are still cautious and waiting for a confirmed breakout.
Fundamental Drivers: Token Burn and Ecosystem Growth
The recent burn of over 410 trillion SHIB tokens has introduced a strong deflationary element to the tokenomics. By permanently removing a large portion of the supply, the burn event could support future price appreciation if demand returns. This move is complemented by ongoing upgrades to the Shibarium Layer 2 network, which aims to enhance decentralization and privacy within the Shiba Inu ecosystem.
On-chain data also shows that large holders, or “whales,” are beginning to accumulate SHIB again after a period of reduced activity. This accumulation, alongside a notable drop in futures open interest from nearly $300 million in May to $122 million, suggests that leverage is decreasing and the market may be preparing for a trend reversal.
Market Outlook and Analyst Expectations
While SHIB’s price remains well below its all-time high, the combination of technical support, reduced supply, and renewed accumulation by major holders is creating a cautiously optimistic outlook. If SHIB can break above its current resistance levels, analysts believe a move toward $0.00001765 is plausible, with the potential for further gains if bullish momentum accelerates .
For those tracking the latest on SHIB, keep an eye on key support and resistance levels, as well as ongoing developments in the Shiba Inu ecosystem. For more details on SHIB’s price and ecosystem, visit CoinMarketCap, Binance, and Shibarium.
