thecryptobasic.com
Shiba Inu could rebound from recent price underperformance with a 62% rally in view, as recent analysis highlights a bullish formation.
Specifically, Tom Tucker shared this bullish prospect for Shiba Inu in a recent tweet amid a broader market capitulation. Bitcoin’s temporary drop below $100,000 spilled over to Shiba Inu, which crashed to an intraday bottom of $0.00001004, a 16-month price low.
Tucker noted that the drop sprang from the escalating geopolitical tension, as the United States joined the war between Iran and Israel. While Shiba Inu has rebounded slightly, it remains down 15% since the start of June and 38.7% from May’s high of $0.00001765.
The analyst also highlighted an 80% drop in whale holdings, as large Shiba Inu holders take to caution. Open interest further indicates a decline in leveraged trading, as the indicator drops to $122.97 million, a figure last seen in early April.
Bullish Formation Sparks Optimism
Nonetheless, Shiba Inu may be up for a drastic price change, according to the market analyst. Tucker shared an emergence of a bullish structure in his June 22 analysis, identifying possible confirmations for a potential 62% rally.
For context, he noted that Shiba Inu is forming a double bottom price structure on the 1D chart, a pattern that often suggests that an asset’s price has bottomed. An accompanying chart supports this assertion, showing that Shiba Inu approached a notable low of $0.00001004 on Sunday.
Shiba Inu had earlier rebounded from the area on April 7, recovering from a low of $0.00001028. It was the momentum from the support area, combined with a broader market uptrend, that saw the meme coin rally 71.6% to its May 12 high of $0.00001765.
Now, Shiba Inu has retested the area, raising a similar optimism. Tucker highlighted that SHIB needs to hold the critical support area around the $0.00001030 region to confirm the double bottom formation and a consequent 62% rebound.
Notably, the second-largest meme coin by market cap has shown resilience around the support. It has rebounded 7.7% from Sunday’s intraday low to its current price, with the double-bottom pattern becoming more obvious.
If momentum sustains, Tucker believes Shiba Inu will rally 62%, culminating in an uptick to $0.00001752 from the current market price of $0.00001081. This suggests a retest of prices close to May’s high.
Shiba Inu Team Calls for Patience
Meanwhile, the Shiba Inu ecosystem team has urged proponents to remain calm amid the recent market downtrend. The ecosystem’s marketing lead, Lucie, assured that it is not over yet because Shiba Inu is yet to win.
Spurring this call for calm is the prospect that SHIB would rally to unprecedented prices in the foreseeable future, rewarding those who held through the storm. Recall that the Shiba Inu team has endorsed a price target of $0.01 for the doggy-themed meme coin, but admitted this price would take long.