Shiba Inu's Price Stable After 73% Drop, Potential 25% Rebound Ahead

Shiba Inu's price has been relatively stable in recent days after dropping to a critical support level, currently trading at $0.00001240, slightly above the year-to-date low of $0.00001080. This level is significantly lower than the peak of $0.00004560 reached last year. The analysis explores potential scenarios for the coin's future price movements.

The daily chart indicates a potential breakout for SHIB in the coming weeks. The coin has formed a double-bottom pattern at $0.00001090, with a neckline at $0.00001565. A double-bottom pattern is typically bullish, suggesting that the price could rebound to the neckline, representing a 25% increase from the current level, and potentially rise further to $0.00002030. This target is estimated by measuring the depth of the double-bottom pattern and projecting the same distance from the neckline.

Additionally, SHIB has formed a large falling wedge pattern, characterized by two descending and converging trendlines. Historically, this pattern often leads to a strong bullish breakout as the lines converge. This pattern also suggests a potential bullish breakout in the near future.

However, the weekly chart presents a more bearish outlook. SHIB has formed a double-top pattern at $0.0000333, with a neckline at $0.000010, where it is currently trading. The price has also fallen below the 50-week and 200-day moving averages, forming a death cross. This technical indicator is often seen as a bearish signal, as the last occurrence in November 2022 resulted in a nearly 40% drop. If SHIB falls below the support level of $0.0000107, it could indicate further downside, potentially reaching the key support level of $0.0000054, the lowest point in May 2023.

The mixed signals from the daily and weekly charts suggest that the future price movement of SHIB could be influenced by its fundamentals. There are indications that the crypto market may rebound as investors adapt to the new economic environment of high tariffs and recession. Bitcoin has remained above $80,000, suggesting that bulls are providing support. Additionally, the rising recession odds may prompt the Federal Reserve to intervene, potentially leading to more interest rate cuts than expected. Historically, the crypto market has performed well during periods of easy money policies, suggesting that the bullish scenario from the daily chart may prevail.