Shiba Inu Price Poised to Double Amid Rare Chart Patterns
Highlights:
- Shiba Inu has formed a cup and handle pattern on its daily chart.
- A golden cross and bullish pennant pattern further support the bullish outlook.
- These technical formations suggest significant breakout potential for SHIB.
Shiba Inu’s price continues to consolidate near a key level, but the emergence of three rare chart patterns indicates a possible major move. If these patterns play out, SHIB could potentially double in value in the coming weeks.
Technical Analysis: Why SHIB Could Double
The daily chart reveals three notable patterns signaling further upside:
- Golden Cross Formation:
On October 20, SHIB formed a golden cross, where the 50-day Weighted Moving Average (WMA) crossed above the 200-day WMA. This pattern, which emphasizes recent data, is often viewed as a bullish indicator for sustained upward momentum. - Bullish Pennant Pattern:
Between November 4 and 12, SHIB developed a bullish pennant, featuring a long flagpole followed by a symmetrical triangle. Breakouts typically occur as the triangle converges, a point that SHIB is rapidly approaching. - Cup and Handle Formation:
The coin has also formed a cup and handle pattern since peaking at $0.000030 on May 29. This classic bullish setup involves a rounded bottom (the cup) followed by consolidation (the handle). The handle coincides with the triangle portion of the bullish pennant, amplifying the breakout potential.
By measuring the height of the cup pattern, analysts estimate a potential 100% price increase, targeting a key resistance level at $0.000045. A breakout above this level could turn it into support, reinforcing the bullish case. However, a drop below $0.000020, the October 29 high, could invalidate this outlook and push SHIB to $0.000015.
Shiba Inu Burn Rate and Market Factors
Shiba Inu’s burn rate, a critical driver of scarcity, has declined 96% in the last 24 hours to 352,413 tokens, according to Shiburn. Despite the short-term dip, over 410 trillion SHIB have been burned, leaving 583 trillion in circulation. This trend, combined with ecosystem-driven burns from platforms like ShibaSwap and Shibarium, supports a long-term bullish trajectory.
The ongoing crypto market rally also provides favorable conditions. If Bitcoin crosses $100,000, altcoins like SHIB are expected to follow suit with strong breakouts.
Outlook
With bullish technical patterns, a robust burn rate, and a supportive market environment, Shiba Inu appears poised for significant gains. Key levels to watch include $0.000045 for a breakout and $0.000020 as critical support.
