Shiba Inu (SHIB) may be experiencing a short-term downturn, but top analysts argue that the meme coin is laying the groundwork for a powerful rebound. Despite a 5-day correction streak, experts see bullish structures forming, signalling a potential surge in price.
Recent Price Dip Doesn’t Shake Investor Optimism
Over the past 24 hours, SHIB has dropped by 8%, continuing its downward momentum after the recent FOMC announcement rattled crypto markets. The asset has now recorded four consecutive days of losses, with a fifth currently underway.
In July, Shiba Inu opened at $0.00001142 and climbed nearly 40% to reach a high of $0.00001597. However, it closed the month at $0.00001244, holding only 8.9% of that gain. Despite this, analysts believe the pullback is temporary and possibly constructive.
Cup and Handle Pattern Signals Imminent Breakout
On July 31, analyst Joe Swanson shared a bullish technical outlook for SHIB via an X (formerly Twitter) post. He identified a textbook cup and handle pattern forming on the daily chart—a well-known bullish signal in technical analysis.
This pattern typically features a U-shaped recovery (the “cup”) followed by a short-term price dip and consolidation (the “handle”). According to Swanson, the “cup” started forming when SHIB hit $0.00001765 in May. After a correction, it bottomed out at $0.00001002 on June 22. From there, it rebounded sharply to $0.00001597 by July 21, completing the cup.
The current decline represents the handle portion, suggesting the pattern is near completion. Historically, a breakout from this structure leads to a strong price rally.
Related article: Shiba Inu Builds Bull Flag as Analysts Predict Parabolic Surge to $0.0001
Whale Activity and Momentum Could Push SHIB Higher
Swanson points to strong whale accumulation as a key driver behind the expected surge. He believes SHIB could break through the neckline resistance at $0.00001715 and soar to $0.00002150, representing a 70% increase from current levels.
Interestingly, Swanson also indicated that the rally may not stop there. His analysis suggests the price could reach as high as $0.00006217, which would be a staggering 414% increase from SHIB’s current value of $0.00001209.
Double Bottom Formation Adds to Bullish Case
Further supporting this positive outlook is a double-bottom pattern on SHIB’s chart. This pattern forms when an asset tests a critical support level twice and rebounds both times, signaling strong buying pressure.
SHIB hit a low of $0.00001028 on April 7 during a broader market sell-off, only to bounce back strongly. It tested this same support again in June, forming the base of the cup. The repeated rejection of lower prices indicates a solid demand zone, reinforcing Swanson’s bullish stance.
Swanson isn’t the only one expecting explosive growth. Analyst Javon Marks previously forecasted an even bigger rally, projecting SHIB to hit $0.000081. This would represent a gain of over 500% from current prices. Marks emphasized that SHIB has maintained a breakout structure, increasing the likelihood of another parabolic move.
Final Thoughts
While SHIB’s current correction might concern short-term traders, multiple technical indicators suggest the meme coin could be on the verge of a significant breakout. The cup and handle formation, combined with whale activity and a double-bottom support level, creates a compelling bullish narrative.
Investors should closely monitor SHIB’s price action in the coming days. If it confirms the breakout above the neckline, the next move could take SHIB to levels not seen since early 2022. For now, the charts, and the analysts, point to strength brewing beneath the surface.
