The Shiba Inu price has settled at a key support level, pointing to a strong surge in the next few weeks. On Monday, Black Monday in the crypto industry, the SHIB token dropped to a low of $0.00001065. This price was down by over 67% from its highest in November last year. This article explains why the Shiba Inu coin has formed bullish patterns, pointing to a strong comeback.
Shiba Inu Price Technical Analysis Hints at a Rebound
The 1D chart shows that the price of Shiba Inu is preparing for a strong comeback once the ongoing fear season ends. It bottomed at $0.00001066 on Black Monday. This was a notable level since the coin has failed to move below it three times before. It initially dropped to that price in August last year and then failed to crash below it on March 11.
Therefore, the Shiba Inu price has formed a triple-bottom chart pattern with a neckline at $0.00003340. A triple bottom is one of the most bullish patterns in technical analysis.
In addition, the SHIB price previously formed a small double-top pattern at the same point. Its neckline was at $0.00001570, its highest point on March 26.
Before that, Shiba Inu price has formed a falling wedge pattern that is shown in black above. This pattern is made up of two falling and converging trendlines, with a bullish breakout happening when the two lines near their meeting point.
Therefore, these technicals indicate a strong Shiba Inu price surge in the coming days. If this happens, the initial target to watch will be the neckline at $0.00001570, up by 36% from the current level. A break above that level will point to more SHIB price gains to the 50% retracement point at $0.00002215, up by almost 100% from the current level. A drop below the support at $0.00001068 will invalidate the bullish outlook.
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Why SHIB Price May Rebound Soon: The Fundamentals
There are three main reasons why the SHIB price may surge in the coming days. First, the crypto and stocks fear and greed index has moved to the extreme fear zone as concerns about tariffs and recessions have risen. History shows that times of panic are followed by exuberance, which may happen soon.
Second, Shiba Inu has established itself as one of the industry’s most fundamentally strong meme coins. It has created an ecosystem of Shibarium that recently crossed the 1 billion transaction milestone. The developers have now said that the network is moving to its golden era of strong growth. Also, Shiba Inu is one of the top deflationary tokens because of its consistent burns.
Third, the price of Shiba Inu may jump if the Federal Reserve slashes interest rates to deal with Donald Trump’s tariffs and the potential recession. Risky assets like SHIB do well when a central bank cuts interest rates.
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