Shiba Inu’s (SHIB) month-to-date price rally seems to be setting the stage for a double bottom pattern, a major bullish setup.
The joke cryptocurrency has risen 18% this month, its best performance since November, with prices gaining over 7% in the past 24 hours alone, according to CoinDesk data. The rally is consistent with the increased risk-taking in the crypto market triggered by bitcoin’s rally to lifetime highs above $118,000.
The upswing is characterized by robust trading volumes and and an increase in token burn, which took out a major chunk of supply out of circulation, according to CoinDesk’s AI research.
Key AI insights
- SHIB surged 7% during the preceding 24-hour period from July 10, 12:00 to July 11, 11:00, ascending from $0.000012476 to $0.000013399 on exceptional volume of 1.904 trillion tokens.
- Acute reversal materialized during the final 60 minutes from July 11, 10:26 to 11:25, with SHIB declining 1% to settle at $0.000013385 as liquidation pressure manifested.
- Token burn mechanisms accelerated with over 9.5 million SHIB tokens permanently withdrawn from circulation during the recent 24-hour period, though price impact remained subdued.
Key levels
- Resistance breakthrough at $0.000013110 occurred on an exceptionally elevated volume of 1.904 trillion tokens.
- Volume-supported resistance level established, approaching twice the 24-hour average trading activity.
- A conventional support zone formed around $0.000013230, with resistance positioned at $0.000013580.
- Sustained upward momentum suggests potential continuation towards $0.000014000 psychological level.
Double bottom bull reversal?
SHIB’s double-digit month-to-date gain follows a successful defence of the April low at around $0.00001005, hinting at the formation of a double bottom pattern on the daily chart.
The pattern comprises two nearly equal troughs separated by a recovery. A price rise through the trendline connecting the high point of the recovery is said to confirm the breakout and a bullish trend reversal.
In SHIB’s case, the so-called double bottom resistance is marked by the May high of $0.00001764. A move through that level would signal a major bull run.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.