Shiba Inu Hits Key Inflection Point for Potential 40% Rise

For instance, Shiba Inu’s price bounced by over 100% in January 2022 after testing the $0.000017 level as support. A similar scenario appeared earlier this year, in April 2024, wherein the same level capped SHIB’s downside attempts, leading to a circa 60% rebound a month later.

The memory of past significant price movements generally influences crypto traders’ behavior. In January 2022, the substantial 100% price bounce from this level left a strong impression. Similarly, the 60% rebound in April 2024 reinforced the importance of this level, raising the possibility of traders remembering these moves and, thus, acting on the belief that history might repeat itself.

However, there’s one instance in May 2022 wherein SHIB decisively broke below the $0.000017 support level to fall by over 60% afterward. This breakdown occurred in the aftermath of the Terra collapse. Since a black swan event of such a massive scale is not around anymore in 2024, and the market is instead focusing on a potential “memecoin supercycle,” SHIB’s possibility of undergoing a strong breakdown move below the $0.000017 support level seems low.

The Doji Candlestick and Moving Average Support

More cues supporting Shiba Inu’s bullish fractal analysis above come from two technical indicators. One of them is the ongoing formation of a Doji candlestick pattern on SHIB’s weekly chart.

For the unversed: A Doji pattern occurs when a candlestick’s open and close prices are nearly identical, indicating that neither the buyers nor the sellers gained control during the period. When found at the top of an uptrend or the bottom of a downtrend, a Doji can signal a potential reversal.

SHIB is forming a similar candlestick pattern for the week ending June 30, which may lead to a bullish reversal in July.