Shiba Inu (SHIB) is seeing gains on June 7 as weekend volatility gives bulls an advantage. The ongoing rally could persist following a surge in transaction volumes to multi-month highs, according to data from the on-chain analytics platform Santiment. Meanwhile, a double-bottom pattern suggests a possible bounce from key support, potentially driving Shiba Inu’s price higher. With multiple bullish indicators aligning, could $0.000045 be the next target?
At the time of writing, SHIB is trading at $0.0000128, marking a 4% intraday gain. Price fluctuations indicate rising volatility, with SHIB bouncing between a daily low of $0.0000122 and a high of $0.0000128.
Shiba Inu Eyes $0.000045 as Key Support Holds
Shiba Inu has faced downward pressure over the past two weeks, mirroring the broader decline among meme coins. This dip raised concerns of a possible drop to $0.000009 after support levels on the daily chart weakened.
However, on a larger timeframe, particularly the weekly chart, a bullish pattern remains intact. The double-bottom formation is often a precursor to trend reversals from bearish to bullish, though confirmation requires SHIB to successfully defend support at $0.000013.
SHIB previously rebounded from this level in early April before briefly rallying. If support holds again and an upward move gains momentum, initial resistance lies at $0.000032. A breakthrough above this level could pave the way for further gains toward the $0.000045 mark.
Despite these bullish indicators, one key challenge remains—insufficient buying pressure. The relative strength index (RSI) currently sits at 42, reflecting bearish sentiment. For SHIB to advance toward $0.000045, the RSI must cross above 50, signaling the maturation of the double-bottom pattern.
Surging Transaction Volumes Support SHIB’s Recovery
The 4% price increase for SHIB over the last 24 hours coincides with a rise in transaction volumes. Data from Santiment shows a notable spike in daily SHIB transactions over the past two days.
On June 5, transaction volumes reached 25.77 trillion, the highest level in five months, while June 6 recorded 18.68 trillion.
This surge suggests potential capitulation, which may create an opportunity for SHIB to rebound and reclaim the $0.000045 level. CryptoNow’s analysis also highlights an increase in SHIB’s Age Consumed metric, indicating long-term holders may be exiting, which could further contribute to price recovery.
With a confirmed double-bottom pattern on the weekly chart and strong transaction activity, Shiba Inu could see a rally to $0.000045, provided it successfully defends its support at $0.000013. The uptick in transaction volumes further supports this possibility, reinforcing the likelihood of a price recovery in the near term.
It’s important to note that cryptocurrency remains an unregulated digital asset, not recognized as legal tender, and is subject to market risks. The information provided should not be considered financial or trading advice. CryptoNow holds no responsibility for any investment decisions made based on the content of this article.
