Shiba Inu price remained stable in recent days after finding substantial resistance at $0.00003280. It remained in a tight range even as Bitcoin climbed to $103,000 for the first time and sentiment in the crypto industry increased.
Technical data suggests that SHIB price could rise by 80% over the next few weeks as the Santa Claus rally begins.
Shiba Inu price forms a cup and handle
The biggest bull case for the SHIB Price is the fact that it formed a cup and handle pattern on the daily chart. This trend began to form on March 29 when the coin reached a high of $0.00003280. After that, it fell and formed a rounded bottom pattern and recently retested the upper part of the cup.
Therefore, the current consolidation is part of the formation of the handle section, which often follows a strong bullish breakout. If we measure the depth of this trend, as shown below, we see that the coin could rise to $0.0002450 in the coming weeks. If this happens, the coin will jump about 80% from the current level, a jump of 80%.
For this rally to occur, SHIB price must first jump above the key resistance level at $0.00003280, the upper part of the cup. It also needs to turn key resistance at $0.0000455, its highest level this year, into a point of support.
The bullish case for Shiba Inu also lies in the fact that it formed a golden cross pattern on October 27. This trend occurred when the 50 and 200 day moving averages reversed.
The bullish momentum will become invalid if Shiba Inu dips below the important support at $0.0000226, the lower side of the handle section. A fall below this level will cause it to fall all the way to the psychological point of $0.000010.
SHIB chart by Trading View
Catalysts for the SHIB rally
The main catalyst for SHIB’s price rise will be the fact that there are chances that cryptocurrencies will continue to do well. The crypto Fear and Greed Index has moved towards the extreme greed zone, while the altcoin season accelerates. Moreover, in most cases, assets increase before Christmas due to the Santa Claus gathering.
Other data shows that Shiba Inu futures open interest remained at a high level, a sign of demand. It had an open stake of more than $157 million, slightly lower than this month’s high of $184 million.
The other potential catalyst for the Shiba Inu price is that the network continues to burn millions of tokens every day. This makes SHIB the largest deflationary coin as its supply will continue to decline.
Therefore, a combination of strong technical and fundamental data means that Shiba Inu price could soon experience a strong bullish breakout.
Learn more: Jasmy Price Rises: How High Can Japanese Bitcoin Go?