Shiba Inu Price Eyes Bullish Reversal with Potential Double-Bottom Formation

• Shiba Inu’s price chart may be indicating a bullish reversal with a potential double-bottom formation.
• On-chain metrics signal a possible 40% rally for Shiba Inu.
• New network accounts have reached an all-time high, indicating increased adoption.

Discover the latest developments in Shiba Inu’s price trend and its potential for a bullish reversal. Understand the factors driving the recent uptick in network accounts and what it means for SHIB’s future.

Shiba Inu Price Eyes Potential Breakout

The SHIB price chart currently depicts a falling channel, indicative of a sustained downward trend. However, recent price activity near the lower boundary of this channel suggests a potential short-term reversal. Key resistance levels to monitor include the 50-day EMA at $0.00001718 and the 200 EMA at $0.00001855. These resistance points are crucial for determining the next directional move of SHIB.

Double-Bottom Pattern Points to Possible Reversal

Technical analysis reveals that the recent candlesticks near the lower channel boundary form a potential double-bottom pattern. This is a bullish reversal pattern that, if confirmed, could propel SHIB prices higher. Initial targets could range from $0.00001855 to $0.00002748, contingent upon surpassing immediate resistance levels. The RSI reading of 31.47 also supports this bullish scenario, suggesting that SHIB is nearing oversold territory and may be due for a bounce.

On-Chain Metrics Support Bullish Outlook

Data from Shibarium Scan indicates a spike in new network accounts, reaching an all-time high on August 6. This rise in new accounts is a promising indicator of growing adoption and investor interest, which often correlates with price increases. Furthermore, IntoTheBlock data shows heightened whale activity, particularly on August 5, which underscores elevated trading volumes and potential bullish sentiment.

Conclusion

In summary, Shiba Inu’s price is at a critical juncture with potential for a bullish reversal. Key resistance levels and supportive on-chain metrics suggest a favorable outlook if these levels are breached. Investors should monitor SHIB’s movement closely, as breaking above $0.000014 and maintaining levels above the 50-day EMA could trigger a substantial rally. The recent surge in network accounts and whale activity further adds weight to this bullish perspective, indicating robust interest and investment in the asset.