The Silly meme coin, SILLY, has shown signs of a potential rally, with its price forming a double-bottom pattern around $0.0325. This pattern suggests a bullish trend, indicating that the price could increase by 20% initially, reaching $0.0439, and potentially extending further to $0.0554.
However, for this bullish scenario to remain valid, the equal lows formed around $0.0312 need to become a resistance level. If this does not happen, it could invalidate the bullish thesis.
The recent consolidation in Silly’s price may soon come to an end as the altcoin looks poised for an upward breakout. Investors who accumulated SILLY after the dip on February 12 might see handsome rewards if they remain patient in the coming days.
Silly’s price experienced a significant decline of 40% between February 8 and 10, finding a local bottom around $0.0321. Despite an attempted recovery rally, SILLY failed to move higher. However, the subsequent retest of the $0.0321 level has led to the formation of a double-bottom reversal pattern.
This pattern is reinforced by the bullish convergence between the second low of the pattern and the Relative Strength Index (RSI). The RSI indicates higher momentum on the second low compared to the first, suggesting a weakening bearish momentum and hinting at a reversal of the downtrend.
Typically occurring after a sharp correction, the double-bottom pattern signals a potential reversal of the downtrend. If SILLY can surpass the February 11 swing high at $0.0377 and establish a higher high, it could indicate a shift in the trend, attracting sidelined buyers and initiating an uptrend.
Investors may anticipate SILLY to retest $0.0439, approximately 23% above the current trading level of $0.0358. In an optimistic scenario, SILLY’s price could extend even further to retest $0.0554, potentially resulting in a 55% gain.
SILLY/USDT 4-hour chart
On the contrary, if Bitcoin price takes a dip, Silly price and other altcoins are likely to follow suit. Regardless of BTC, SILLY could get rejected around $0.0370, which is the midpoint of the double bottom pattern. A sell-off here could send the Solana-based meme coin to sweep the liquidity resting below $0.0312.
A quick recovery there could indicate that bulls are ready for an upswing. However, if SILLY flips the equal lows formed around $0.0312 into a resistance level, it will invalidate the bullish thesis.
In such a case, Silly price could pullback roughly 4% and tag $0.0300.
