- A “W” double bottom pattern on SHIB suggests a market reversal from downtrend to uptrend.
- Recent token burns lower SHIB’s circulating supply, affecting market value and investor mood.
The meme coin Shiba Inu (SHIB), which has drawn interest from the cryptocurrency community, is currently at a critical point and showing signs of a potential big turnaround. The coin, which is well-known for its volatility and strong community support, is displaying a typical double bottom potential pattern.
This pattern denotes a potential change in trend from its recent downward trend to an expected upward trend.
Position in the Market Right Now: a Sneak Peek at SHIB’s Show
SHIB is currently trading at $0.00002894, having a 2.33% increase in the last 24 hours and a slightly 0.83% increase over the previous week. This minor but positive market shift shows SHIB’s resilience and potential despite market uncertainties.
The double bottom pattern, which is easily recognizable by its distinctive “W” shape, indicates the end of a downtrend and the beginning of an upward one in technical analysis.
In addition to being a technical phenomenon, SHIB views this pattern as a ray of hope for investors hoping for a reversal. When the price breaks through the resistance level that forms the “W” top, the pattern is confirmed.
This key resistance is set at $0.000029, which is marginally above recent highs in the case of SHIB.
The Way Back: Overcoming Opposition
A successful climb above this level of resistance might be a game-changer for SHIB, perhaps rescuing it from its recent slump and paving the way for a strong comeback. But before this optimistic prediction comes true, SHIB needs to confirm the validity of the reversal by breaking above the resistance and continuing upward momentum.
The next logical resistance is located at $0.00003, if SHIB is able to maintain its position above the double bottom’s peak. Breaking through this barrier would attract additional investors to the market and push SHIB closer to a more significant surge.
By confirming investor confidence in SHIB’s market resilience, this scenario would also validate the bullish pattern.
But there are a lot of potential problems along the way. Should the momentum falter and the price fall below the support level of the double bottom, which is located at $0.00001989, it could reduce the likelihood of a reversal.
Such a scenario would imply that the market might not be ready for a rally, potentially resulting in more consolidation or a decline before an upswing develops.
According to a previous report by ETHNews, Shiba Inu not only caught the attention of the cryptocurrency community due to its market volatility but also outperformed Dogecoin and Bitcoin in terms of trading volume on a significant exchange. To explore these developments in greater detail, please refer to the following YouTube video.
Token Burn: An Incentive to Transform?
On the other hand, the recent token burn has added another level of intrigue to SHIB’s compelling story. 98,045,035 SHIB tokens were burned in the last 24 hours, marking a 304.98% growth.
HOURLY SHIB UPDATE$SHIB Price: $0.0000287 (1hr 1.32% â–² | 24hr 2.06% â–² )
Market Cap: $16,956,040,837 (2.20% â–²)
Total Supply: 589,275,241,204,667TOKENS BURNT
Past 24Hrs: 98,045,035 (304.98% â–²)
Past 7 Days: 330,335,592 (82.66% â–²)— Shibburn (@shibburn) April 8, 2024
With 330,335,592 tokens taken out of circulation during the past week, the burn rate has increased by 82.66%. This calculated move could have a significant impact on the price dynamics of SHIB, perhaps improving investor confidence and the company’s position in the market.