The popular meme-inspired cryptocurrency, Shiba Inu (SHIB), is drawing significant attention from market analysts who foresee a potential price rebound despite its recent downturn. After experiencing a challenging period, technical indicators suggest a bullish shift on the horizon for SHIB.
In the last 24 hours, SHIB has seen an 8% dip, a ripple effect from the Federal Open Market Committee (FOMC) outcome that has broadly impacted the crypto market. This bearish momentum has led to four consecutive days of correction for the token, with the current market indicating a fifth. Shiba Inu struggled to maintain its early July gains, opening the month at $0,00001142 and reaching an intramonth high of $0,00001597 (a 39,8% increase), but closing at $0,00001244, retaining only 8,9% of that climb.
However, analysts are highlighting the formation of a “cup and handle” pattern, a classic bullish signal in technical analysis. This pattern, resembling a teacup with a handle, typically indicates a period of consolidation followed by a breakout. The “cup” section began forming with SHIB’s high of $0,00001765 in May, followed by a price correction that saw it dip to $0,00001002 by June 22. A subsequent rebound to $0,00001597 on July 21 completed the cup’s curve.
According to analyst Swanson, SHIB is now traversing the “handle” portion of this formation. The current pullback aligns with the characteristics of a handle, suggesting the pattern is nearing its completion. Supported by significant whale accumulation, Swanson forecasts a potential 70% growth from current levels. This would see SHIB surpassing the pattern’s neckline at $0,00001715 and reaching a target of $0,00002150.
Source: analyst Swanson
Further reinforcing this optimistic outlook is the emergence of a “double bottom” price formation. This pattern signifies that an asset has twice rejected lower prices at a critical support level, often acting as a strong catalyst for upward movement. Shiba Inu demonstrated this by hitting a low of $0,00001028 on April 7, a period of broader market capitulation. Notably, this support was retested again during the formation of the cup curve, with demand buffering the price weakness once more.
Swanson posits that the combined momentum from this double bottom pattern and a potential breakout from the cup-and-handle structure could propel Shiba Inu to new highs. Intriguingly, his charts suggest that SHIB could rally beyond the initial 70% projection, potentially reaching $0,00006217. This would represent a substantial 414% surge from its current trading price of approximately $0,00001209.
Adding to the bullish chorus, analyst Javon Marks previously indicated even greater upsides, forecasting a target of $0,000081. Marks suggested this rally, exceeding 500%, is achievable as Shiba Inu has successfully maintained its breakout position.
Investors are advised to conduct their own thorough research and consider market volatility before making any investment decisions, as the cryptocurrency market carries inherent risks.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
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