- SHIB is up 18% in July, its strongest monthly move since last November.
- Token burns and strong volumes are tightening supply and supporting the rally.
- A double bottom pattern may be forming, with $0.00001764 as the key breakout level.
Shiba Inu (SHIB) is making a strong comeback this month, climbing 18% so far—its best monthly performance since November. That momentum is now stirring hopes of a major bullish reversal, with technical analysts pointing to a potential double bottom pattern forming on the daily chart.
The latest price surge is being fueled by renewed risk appetite across the crypto space, especially after Bitcoin smashed past $118,000. For SHIB, increased trading volumes and a sharp spike in token burns are helping tighten supply and support higher prices.
Burn Rates Up, Volumes Exploding
According to CoinDesk data, SHIB jumped 7% in just 24 hours—from $0.000012476 to $0.000013399—on massive volume totaling 1.904 trillion tokens. However, liquidation pressure caused a small 1% dip shortly after, sending the price back to $0.000013385.
Even so, the upside momentum hasn’t faded. Over 9.5 million SHIB tokens were burned in the past day, continuing a deflationary trend. While the immediate price impact was muted, these burn mechanics are shrinking the supply—something long-term bulls see as critical.
Volume-heavy resistance formed near $0.000013580, while support emerged around $0.000013230. If the price holds above those levels, traders are eyeing the next psychological milestone at $0.000014000.
The Double Bottom: A Bullish Setup in Play?
All signs are pointing to a key reversal setup on the charts. SHIB defended its April low of $0.00001005, then bounced back, forming the second half of a potential double bottom pattern. This is a textbook bullish signal—if confirmed.
The neckline for this setup sits at SHIB’s May high of $0.00001764. If the token manages to punch through that level with volume, analysts say it could mark the beginning of a major upward trend.
What Traders Are Watching Now
The crypto market is riding a strong wave of optimism, and SHIB appears to be riding right alongside it. Traders are watching closely to see if the token can maintain momentum and push through key resistance zones.
Should SHIB break out above $0.00001764, it could signal a full-blown reversal—and potentially another leg higher. For now, bulls are hoping the burn rates and breakout volumes keep stacking in their favor.
