Analyst Says Shiba Inu Showing Bullish Potential as Recent Dip Leads to Cup and Handle Structure

Shiba Inu may be on a downward spiral, but analysts believe prices could rebound imminently as bullish indicators fuel optimism.

Particularly, SHIB is down by 8% in the past 24 hours, as the ripple effect of the FOMC outcome continues to weigh on the crypto market. On the daily timeframe, the meme coin has corrected for four consecutive days, and the current market points to the fifth.

The bearish momentum ensured it gave back most of its early gains in July at the closing stages of the month. For context, Shiba Inu opened at $0.00001142 in July and grew 39.8% to an intramonth high of $0.00001597 but retained just 8.9% of that gain with its monthly close of $0.00001244.

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Bullish Structure Points to Rebound

Meanwhile, Joe Swanson shared in a July 31 X post that Shiba Inu still has bullish prospects. He suggested that the recent downtrend is part of a broader positive development evidenced in an accompanying chart.

For context, he revealed that a classic cup-and-handle pattern is forming on the daily chart. For the uninitiated, the structure consists of a U-shaped price curve followed by a period of price consolidation in a channel.

The cup section started formed with Shiba Inu’s high of $0.00001765 in May, followed by a period of price correction. SHIB reached a low of $0.00001002 on June 22 but rebounded from the support to complete the curve with a surge to the high of $0.00001597 on July 21.

Per the chart, Shiba Inu is now on the structure’s handle. Swanson stated that the ongoing pullback aligns with the handle, suggesting that the pattern is nearing its completion.

Backed by momentum from ongoing whale accumulation, the market analyst predicted a breakout to greater heights. He asserted a 70% growth from the current market level, surpassing the cup-and-handle’s neckline at $0.00001715 to reach $0.00002150.

Double Bottom Backs Bullish Outlook

The analyst highlighted that a double-bottom price formation further backs his bullish outlook. His chart shows that Shiba Inu rejected lower prices at a critical support twice, a catalyst for upward momentum.

SHIB reached a low of $0.00001028 on April 7, amid a broader market price capitulation that wiped out billions on the day. However, the momentum around the area spurred a rebound to higher prices.

Notably, Shiba Inu retested the support again as highlighted earlier, while forming the cup curve, with the demand wall again buffering an apparent price weakness. Swanson suggests that the momentum from the double bottom, coupled with a possible breakout from the cup-and-handle structure, would launch Shiba Inu to new highs.

Interestingly, the analyst’s chart shows that Shiba Inu could rally beyond the 70% he mentioned. It identified that SHIB could grow to $0.00006217, representing a 414% surge from its current price of $0.00001209.

Meanwhile, analyst Javon Marks had earlier predicted further upsides to $0.000081, noting that the rally of over 500% will happen as Shiba Inu has held its breakout position.