Could Shiba Inu's Double Bottom Signal a Meme Coin Comeback?

Shiba Inu (SHIB) has recently formed a double bottom pattern at $0.000012, a historically significant demand zone for the token. This technical formation has emerged after a sharp decline that saw SHIB fall by more than 85% from previous highs, pushing it out of the top 20 cryptocurrencies by market capitalization. The pattern, identified by crypto analyst MyCryptoParadise, is considered a potential bullish reversal signal, particularly because it has occurred at a level where historical buying pressure has frequently emerged [1].

The double bottom formation, a classic chart pattern often used in technical analysis, suggests that selling pressure may be waning and that buyers are beginning to step in. For SHIB, this could imply a potential trend reversal if the price successfully breaks above the immediate resistance at $0.000013. Analysts have noted that the next significant resistance level lies around $0.00001345, followed by a critical range between $0.00001428 and $0.00001445, which represents areas of high liquidity [2]. A strong break above these levels, according to MyCryptoParadise, could trigger a sharp rally in SHIB’s price, particularly if the move is accompanied by strong volume and sustained momentum [1].

However, the bullish scenario is not guaranteed. The double bottom pattern could also be invalidated if the price of SHIB closes below the $0.000012 demand zone, which would signal continued bearish momentum and potentially lead to further declines toward $0.000011. Currently, SHIB remains within a descending channel, a technical structure that has defined its downtrend since reaching previous cycle highs. Traders and investors are closely monitoring whether buyers can effectively defend the $0.000012 level, as this will determine whether the pattern results in a sustained recovery or merely a temporary pause in the broader decline [2].

A closer look at SHIB’s broader context reveals that it entered the market in August 2020 as a second-mover in the meme coin space, competing directly with Dogecoin. Despite lacking traditional utility and being criticized for its speculative nature, SHIB carved out a significant market presence, reaching a market cap of around $7 billion at its peak. This success was largely driven by strong community support and viral momentum rather than inherent technological innovation or utility [3]. The SHIB ecosystem has also introduced projects such as Shibarium, a Layer-2 chain designed to improve on-chain activity, though these have been largely unsuccessful in gaining traction [3].

Currently, SHIB trades at approximately $0.000012, with a market capitalization of over $6.7 billion [4]. While this places it well outside the top 10 cryptocurrencies, it remains a prominent player in the meme coin segment. The token’s low price makes it accessible for retail investors and has contributed to its popularity, particularly during bullish market cycles. However, SHIB’s price movements are highly influenced by market sentiment, and its future performance will depend heavily on whether it can attract sustained interest from both retail and institutional investors [4].

As of now, the market remains in a state of anticipation. Technical indicators such as the double bottom pattern suggest potential for a rally, but confirmation will depend on price action and volume. Investors are advised to remain cautious and monitor key resistance and support levels for any signs of a shift in momentum. While the pattern could indicate a reversal, it could also serve as a bear trap if the price fails to break decisively above $0.000013 and collapses again toward $0.000011.

Source:

[1] Shiba Inu Price Forms Double Bottom At Demand Zone (https://www.newsbtc.com/shiba-inu/shiba-inu-price-double-bottom/)

[2] Shiba Inu Double Bottom Formation Could Signal Rally (https://yellow.com/news/shiba-inu-double-bottom-formation-could-signal-rally-start-analyst-says)

[3] 1 Reason Every Investor Should Know About Shiba Inu (https://www.fool.com/investing/2025/09/01/1-reason-every-investor-should-know-about-shib/)

[4] What is Shiba Inu (SHIB) Coin and is it a Good Investment? (https://www.tokenmetrics.com/blog/what-is-shiba-inu-coin?74e29fd5_page=3)