The Shiba Inu price showed signs of bottoming and formed a unique pattern, signaling a potential short squeeze later this year. SHIB coin was trading at $0.00001360 on Monday, a few points above the year-to-date low of $0.00001080.
Shiba Inu Price Technical Analysis Points to a Surge
The weekly chart shows that the SHIB price bottomed at $0.00001080 this month. This was a notable level, as it was the lowest on August 5 last year.
The price also coincided with the ascending trendline connecting the lowest swings in June, October 2023, and March of this year. Therefore, there are signs that the SHIB price has struggled to move below this level in the past few years.
Most importantly, the coin has formed a double bottom pattern, with its neckline at $0.000033, which is 145% higher than its current level. The Relative Strength Index (RSI) has turned around and pointed upwards, moving from 35.8 to 43.
Therefore, the coin will likely surge in the coming months. This view will become invalidated if the coin falls below the ascending trendline. If this happens, the next point to watch is anticipated to be at $0.000005677, which is down by about 60% from the current level.
Why SHIB Price May Pump Soon
There are a few potential long-term catalysts for the Shiba Inu price. The first main catalyst is that the number of SHIB coins in circulation continues to drop. Shiba Inu started with a supply cap of over 999 trillion, a figure that has fallen to 589 trillion today. As shown below, the daily burn rate soared by 1,562% to 11.8 million.
The Shiba Inu price will also benefit from the ongoing growth of the Shibarium network. The network recently crossed the $1 billion transaction count, and the number of active addresses continues to rise.
Furthermore, Shiba Inu has one of the most active and popular communities in the crypto market, known as the SHIB Army. On-chain data shows that this army has grown significantly recently, with the number of addresses increasing to over 1.5 million.
Shiba Inu may also pump as market risks fall. The risk of Trump firing the Fed Chair has eased, while the odds of him negotiating trade deals have continued to rise. The WSJ has even reported that he was considering cutting China tariffs to 50%. All these catalysts will likely boost risky assets.
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