Shiba Inu (SHIB) faced significant volatility over the weekend, impacted by broader market turbulence following geopolitical tensions. Currently trading at $0.0000107, the meme coin has seen a 24-hour trading volume of $242 million and a monthly decline of 25%. Despite these bearish conditions, technical indicators suggest a potential turnaround could be on the horizon.
A double bottom pattern — a classic bullish reversal formation — is emerging as buyers step in to defend a critical support level near $0.0000106. This level has historically acted as a strong floor, absorbing selling pressure throughout the past year and enabling multiple recovery attempts. If confirmed, this pattern could set the stage for a rally toward $0.000017 and beyond.
Shiba Inu’s Double Bottom: A Signal for Recovery?
On the weekly chart, Shiba Inu appears to be stabilizing after testing its long-standing support at $0.0000106. Since the start of its downtrend in December 2024, this zone has held firm twice — most recently in April 2025 — forming what technical analysts recognize as a double bottom pattern.
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The neckline resistance formed during the April bounce sits at $0.0000173. For the double bottom to be officially confirmed, SHIB would need to close a weekly candle decisively above this level. That move would require a 64% increase from current prices — a steep but not unprecedented climb given past volatility.
Once confirmed, the projected price target derived from this pattern is $0.0000283. This figure is calculated by measuring the distance between the lowest point of the double bottom and the neckline, then adding that value to the breakout point. In an optimistic scenario, SHIB could even retrace back to the beginning of the current downtrend near $0.0000322.
However, confirmation hinges on more than just price action. Supporting indicators must align:
- RSI (Relative Strength Index): Currently sitting at 38, the RSI is in oversold territory — often a precursor to reversal rallies. A bullish divergence, where price makes lower lows but RSI forms higher lows, would strengthen the case for incoming buying pressure.
- Moving Averages: The 50-day Simple Moving Average (SMA) remains above current price levels at $0.0000168, signaling that short-term momentum still favors bears. Only when SHIB sustains a move above this threshold can we consider momentum shifting.
If support at $0.00001 fails, however, the entire pattern collapses — opening the door for a potential 50% drop, according to previous market analyses.
Funding Rate Turns Negative — Is This Actually Bullish?
Market sentiment around Shiba Inu has turned cautious, reflected in its recently flipped negative funding rate. This metric indicates that traders are increasingly opening short positions, betting on further downside.
While negative funding rates typically suggest bearish sentiment, extreme readings can have the opposite effect over time. Santiment data shows SHIB’s funding rate has dropped to its lowest level since April — a condition that previously preceded a strong rebound.
When too many traders are short, any upward price movement can trigger a short squeeze, forcing leveraged traders to buy back positions at higher prices, which amplifies upward momentum. This dynamic played out in April when rising spot volume and closing shorts helped propel SHIB toward $0.0000173.
Thus, today’s overcrowded short positioning may actually serve as fuel for a recovery — provided buyers regain control and spark early momentum.
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Key Levels to Watch in the Coming Weeks
For investors tracking Shiba Inu’s next move, several levels will determine whether this emerging bullish setup holds:
- Support: $0.0000106 – Loss of this level invalidates the double bottom and risks deeper declines.
- Neckline Resistance: $0.0000173 – A weekly close above confirms the pattern and opens room for gains.
- Short-Term Momentum Line: $0.0000168 – Breach above the 50-day SMA signals improving momentum.
- Volume Confirmation: Sustained increase in spot trading volume must accompany any breakout for legitimacy.
Without strong volume support, any rally may prove short-lived. Conversely, rising demand from retail and institutional participants could provide the catalyst needed for sustained upside.
Frequently Asked Questions (FAQs)
Can Shiba Inu hold the $0.00001 support level?
Yes, if buyers perceive it as a strategic entry point. This level has historically absorbed selling pressure and triggered bounces, making it psychologically significant.
What triggers a confirmed bullish reversal in SHIB?
A decisive weekly close above $0.0000173 — the neckline resistance — along with rising trading volume and bullish RSI divergence.
Is a negative funding rate good or bad for SHIB?
Initially bearish, but deeply negative readings can become bullish when overcrowded short positions are liquidated during a rebound.
How much could SHIB rise if the double bottom completes?
The minimum target is $0.0000283, with potential extension to $0.0000322 depending on market conditions and investor sentiment.
Could macroeconomic events affect SHIB’s recovery?
Absolutely. Geopolitical instability, regulatory news, or broad crypto market swings can amplify volatility and influence short-term direction.
Should traders enter before or after confirmation?
Conservative traders wait for confirmation (close above $0.000173), while aggressive ones may position near support with tight risk management.
Final Outlook: Cautious Optimism Amid Volatility
Shiba Inu stands at a pivotal juncture. With over 25% lost in one month and sentiment at a low ebb, fear dominates the market narrative. Yet beneath the surface, technical structure and positioning suggest a recovery may be brewing.
The formation of a double bottom pattern, combined with oversold conditions and extreme short positioning, creates fertile ground for a bounce. While risks remain — especially if support breaks — the potential reward-to-risk ratio improves significantly near $0.0001.
For traders and investors alike, patience and precision will be key. Waiting for confirmation reduces false signals, while understanding on-chain dynamics and sentiment metrics offers an edge in timing entries.
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As always, conduct thorough research and consider personal risk tolerance before making investment decisions. The crypto market remains highly speculative, and past performance does not guarantee future results.