- Tom Tucker identifies double bottom formation suggesting potential 62% SHIB rally target
- Whale holdings drop 80% while open interest falls to $122.97 million amid geopolitical tensions
- Critical support at $0.00001030 must hold to confirm bullish pattern and price recovery
Shiba Inu has formed a potentially bullish double bottom pattern that could drive a 62% price rally according to analyst Tom Tucker, who identified the technical formation despite broader market weakness triggered by escalating Middle East tensions.
The meme coin crashed to an intraday low of $0.00001004 on Sunday, marking a 16-month price floor as Bitcoin’s temporary drop below $100,000 created spillover selling pressure across alternative cryptocurrencies.
Tucker attributes the decline to geopolitical tensions as the United States became involved in the Iran-Israel conflict, creating risk-off sentiment that particularly affected speculative assets like meme coins.
Shiba Inu remains down 15% since early June and has surrendered 38.7% from May’s high of $0.00001765, though recent price action suggests potential reversal conditions may be developing.
Whale Holdings Drop 80% as Leveraged Interest Declines
The broader weakness coincides with an 80% decline in whale holdings as large SHIB investors adopt more cautious positioning amid market uncertainty. Open interest has fallen to $122.97 million, reaching levels not seen since early April and indicating reduced appetite for leveraged trading among derivatives participants.
The combination of reduced whale participation and declining leverage suggests that speculative excess may be washing out of the market, potentially creating healthier conditions for sustained price recovery if fundamental demand returns. Lower leverage typically reduces volatility and liquidation risks that can amplify downward price movements.
Tucker’s analysis centers on a double bottom formation visible on the daily chart, where SHIB has tested the $0.00001004 support level that previously provided buying interest on April 7. The earlier bounce from similar levels at $0.00001028 generated a 71.6% rally to the May 12 high of $0.00001765, establishing precedent for substantial recoveries from this support zone.
The current retest of this critical area has produced a 7.7% rebound from Sunday’s intraday low to the current price of $0.00001081, making the double bottom pattern more apparent. This technical formation typically signals that an asset’s price has found a floor and may be preparing for upward movement.
For the bullish scenario to materialize, Tucker emphasizes that SHIB must hold above the critical support region around $0.00001030. Sustained trading above this level would confirm the double bottom formation and potentially trigger the projected 62% rally toward $0.00001752.
