A bullish reversal pattern has formed for Shiba Inu (SHIB). Will the price rise back to $0.000017?

According to Gate news, CoinGape reports that Shiba Inu (SHIB) has had a tough weekend as the U.S. strikes on Iran triggered panic dumping and massive liquidations in the cryptocurrency market. On June 23, the price of Shiba Inu was $0.0000107, with a 24-hour volume of $242 million. The recent decline has led to a monthly loss of 25% for SHIB. Despite facing bearish resistance, a double bottom pattern, which typically signals a bullish reversal, is forming as long positions defend key support levels and aim for $0.000017.

The weekly chart shows that the Shiba Inu coin price is trying to recover after touching the support level of $0.0000106. This support level has absorbed selling pressure over the past year, supporting multiple rebounds and recovery trends, and may become a good entry point for buyers betting on a rebound.

Since the downtrend began in December 2024, SHIB has held the support level twice, forming a double bottom pattern. The last rebound from this support level for the coin pair was in April 2025, and the subsequent rebound ultimately formed a neckline resistance level at $0.0000173.

If the price of this top emoji coin repeats historical trends and rebounds, it will attempt to retest $0.000017. If the weekly closing price is definitively above the aforementioned neckline, it will confirm a double bottom pattern. To achieve this development, the SHIB token needs to rise 64% from its current price.

The theoretical target price for the double bottom pattern is $0.0000283, derived by adding the distance between the bottoms and the neckline to the breakout point of $0.0000173. An exaggerated bullish target price would be the starting point of this downtrend at $0.0000322. In both cases, if the SHIB token closes definitively above the neckline resistance level, combined with a surge in spot buying volume, it could help it reach the aforementioned price targets.

In order to form a double bottom and signal a recovery similar to the SHIB price in April, the RSI also needs to create higher lows and form a bullish divergence to confirm that buyers are stepping in. Currently, the RSI is at an oversold level of 38.

(Source: Trading View)

However, it is crucial that the 50-day Simple Moving Average (SMA) of SHIB continues to fluctuate above the price, indicating that the short-term momentum remains bearish.

Before the SHIB price breaks above the level of $0.0000168, the bears may still dominate. In addition, a recent analysis by CoinGape indicates that if SHIB falls below the support level of $0.00001, its price will face a 50% crash risk. Such a trend would invalidate the formation of a double bottom pattern.

SHIB financing rate turns negative

The financing rate for SHIB (an indicator of market sentiment) has turned negative. When this happens, it typically creates a bearish tone for SHIB's price forecast, as more and more traders bet on a price decline by opening short positions.

According to Santiment data, the funding rate for SHIB has dropped to its lowest level since April, indicating that short positions are overly crowded. This could be good news, as once the price rebounds, these short positions will be liquidated, leading to a surge in buying pressure. Additionally, the negative funding rate also reflects the market conditions prior to the rebound of Shiba Inu price to the neckline resistance level of $0.000017 in April.

In summary, after the price of SHIB has fallen by more than 25% in just one month, it may be recovering. With the formation of a double bottom pattern and an increase in short positions, the price is expected to rebound to $0.000017.