Shiba Inu price continues to consolidate around a key level, but two unique chart patterns indicate a big move forward. If the pattern breaks out successfully, SHIB could almost double its value.
Technical Data Suggests Shiba Inu Price Could Double Soon
The daily chart shows that SHIB price has formed three extremely rare patterns, which portend more upside in the coming weeks. First, the coin formed a golden cross pattern on October 20 as the 200-day and 50-day weighted moving averages (WMA) crossed. The WMA is often considered a better type of moving average because it focuses on recent data.
Second, SHIB price also formed a bullish pennant pattern, characterized by a long flagpole and a symmetrical triangle. This flagpole occurred between November 4 and 12. In most cases, a bullish breakout occurs when the two triangles approach their confluence levels, which is about to happen.
The other pattern is a cup and handle, which has formed since the coin peaked at $0.000030 on May 29. This pattern consists of two peaks and a rounded bottom, followed by a consolidation or pullback. The handle section coincided with the triangular section of the bull pennant.
One way to estimate the next target is to measure the distance between the top and bottom sides of the cup pattern. In this case the distance was approximately 170%. Thus, a conservative estimate is that the SHIB value could double from the current level. For this to happen, it must reach the key resistance point at $0.000045, 100% above the current level. It is also expected to turn the yearly high of $0.000045 into support.
On the other hand, a fall below support at $0.000020, its October 29 high, would invalidate the bullish view. Such a move could cause SHIB to fall to $0.000015.
SHIB burn rate decreases but upward trajectory remains
A key fundamental catalyst for the Shiba Inu price is its burn rate, where millions of tokens are placed in an inaccessible wallet. Shiburn data shows the burn rate fell 96% in the last 24 hours to 352,413.
Despite this, the trend has accelerated in recent months. Over 410 trillion Shiba tokens have been burned, bringing the total number of tokens in circulation to 583 trillion. Shiba Inu burns occur voluntarily and through fees collected from its ecosystem of platforms like ShibaSwap and Shibarium.
The other potential catalyst for the Shiba Inu price is the current cryptocurrency bull run. If Bitcoin breaks through key resistance at $100,000there are chances that other altcoins will continue their bullish breakout.
Frequently Asked Questions (FAQ)
Yes, there is a high probability that SHIB coin will experience a breakout and bullish surge in the coming weeks. It formed a cup and a handle, a bull pennant and a golden cross.
The main catalyst for SHIB price lies in its strong technical characteristics and the current bull run of cryptocurrencies. SHIB also has significant volumes.
Traders monitor key points. The two most notable are $0.000030, the upper part of the cup handle pattern. The other is the year-to-date high of $0.000045.
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Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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