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The double bottom formation that can be seen on the daily chart indicates that the Shiba Inu may be indicating a potential reversal. The long-awaited catalyst for Gray Investors may be in this traditional bullish pattern, which is often associated with a shift in... market.
After a long decline, SHIB is currently trading at around $0.00002177, indicating that it is stabilizing. At $0.00002105, which has remained stable over the past few sessions, the asset is testing a crucial support near the 100 EMA. Although Gray It appears to be holding so far, and a retest of the 200 EMA near $0.00002054 may occur if this level is not maintained.
If SHIB breaks important resistance levels, the double bottom pattern indicates that it may be able to reverse its negative momentum. The 50 Exponential Moving Average, or $0.00002350, is the first hurdle. The most important resistance area is located at $0.00002585. A 50% up move could be possible if these levels are cleared, which could take SHIB back to its recent highs of around $0.00003500. But size is still an issue.
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There is currently little buying pressure, which begs the question of whether the bulls have enough momentum to overcome resistance levels. In order for the double bottom formation to be validated and the long-term recovery to begin, there must be a significant increase in volume. As an initial indicator of a reversal, SHIB investors should wait for a clear move above $0.00002350.
A drop below $0.00002105 would make a bullish setup false and indicate additional weakness. Finally, the double bottom pattern Shiba Inu Indicates a potential trend reversal. Despite the potential for a 50% upside, traders should be cautious and monitor important volume levels and price areas to support the bullish view.
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