Shiba Inu price crashes as it slowly forms a bullish pattern

Shiba Inu price continued its strong downtrend on Sunday, June 22, as the crypto market crashed after the U.S.-Iran bombing. 

Shiba Inu (SHIB) token plunged to a low of $0.000011, down by 38% from the highest point in May. This retreat has brought its market capitalization from $19 billion in November last year to $6.4 billion. 

SHIB’s plunge coincided with the crypto market crash as investors reacted to President Donald Trump’s order to U.S. military to bomb nuclear sites in Iran. This strike presents major regional risks that may disturb all markets and asset classes, including cryptocurrencies. 

SHIB has also plunged as whales and retail investors capitulated and dumped their tokens. Whale holdings have plunged by over 80% in the last 30 days to 34 trillion, while smart money holdings have dropped by 33% to 13.1 billion. 

More data shows that Shiba Inu’s futures open interest has plunged to $122 million, the lowest level since May. It has dropped from nearly $300 million in May this year. 

Shiba Inu price is forming a bullish pattern

The daily chart shows that the SHIB price has plunged from $0.00001765 in May to $0.000011 today. It has moved below all moving averages, indicating that bears remain in control.

The Shiba Inu price has moved to the extreme oversold level of the Murrey Math Lines tool. Similarly, the Relative Strength Index has moved to the oversold level of 30. Other oscillators, like the Stochastic Oscillator and the MACD, have also pointed downwards, a sign that the downtrend may continue.

On the positive side, SHIB price is slowly forming a double-bottom pattern at $0.00001030. A double-bottom happens when an asset forms two distinct support levels and a neckline at $0.00001765. 

Therefore, Shiba Inu’s outlook is bullish as long as it remains above the double-bottom point at $0.00001030. If this works, the token will likely rebound to the neckline, about 62% above the current level.

A drop below the support at $0.00001030 will invalidate the bullish Shiba Inu forecast and point to more downside, potentially to the psychological point at $0.0000080.