Shiba Inu (SHIB), one of the leading memecoins in the crypto space, has rallied approximately 18% so far in July, marking its strongest monthly performance since November 2023. This surge comes amid renewed risk appetite in the crypto market and growing signs of a potential bullish reversal pattern forming on the charts—a classic "double bottom."

Technical Setup: The Double Bottom Pattern Emerges

Over the past few weeks, SHIB’s price action has begun to resemble a double-bottom pattern, a bullish formation often signaling a reversal from a downtrend. After bottoming near $0.0000100 in late June and bouncing, the token revisited that support level in early July before rebounding again. This created two near-equal troughs with a local high between them—exactly what traders watch for in a potential trend reversal.

Analysts now point to the $0.0000175 region as a crucial "neckline." If SHIB breaks above this resistance with high volume, technical projections suggest a rally of up to 60%, targeting the $0.000017–$0.000018 range.

Burn Rate Explodes as Network Activity Picks Up

In parallel with price action, on-chain metrics have strengthened. The SHIB burn rate—a measure of tokens permanently removed from circulation—has surged dramatically. In one 24-hour period, over 19 million tokens were burned, increasing the rate by more than 1,500%. At other points this month, the burn rate spiked over 65,000%, though these spikes are often driven by single large transactions.

Meanwhile, daily active addresses have increased steadily, suggesting rising user interest and transaction volume. Whale activity has also intensified, with a 46% increase in large SHIB transactions reported last week, according to Ainvest and Ambcrypto analytics.

Macro Sentiment: Crypto Market Turns Risk-On

The SHIB rally aligns with broader crypto market sentiment shifting toward "risk-on" mode. Bitcoin and Ethereum have posted steady gains in July, supported by persistent inflows into U.S.-listed spot Bitcoin ETFs and growing institutional interest. As a result, investors have shown more willingness to explore smaller-cap altcoins like SHIB, often used as high-beta plays in bullish conditions.

Open interest in SHIB futures remains relatively subdued, which some interpret as a healthy sign—lower leverage reduces the risk of sudden liquidations and could support more sustainable upside.

Upside and Downside Scenarios

A sustained move above the neckline could validate the bullish pattern, inviting more speculative momentum into the SHIB market.

Retail Sentiment Remains Strong

Retail enthusiasm for SHIB remains a central driver. According to on-chain data, about 22% of all wallets holding SHIB have balances between $100 and $1,000, underscoring broad-based retail participation. Some analysts have even floated the potential for a long-term 50× rally based on tokenomics, adoption, and burn mechanics—though such projections are highly speculative.

Shiba Inu’s 18% surge in July reflects a combination of technical resilience, on-chain activity, and broader crypto market optimism. The emergence of a double-bottom pattern gives technical traders a bullish setup to monitor closely. If the rally pushes past key resistance, SHIB may have much further to climb. Still, failure to hold current support could quickly unwind the gains, making this a pivotal period for the memecoin’s price trajectory.