Shiba Inu eyes 50% rally as SHIB price enters ‘cup-and-handle’ breakout mode

Shiba Inu (SHIB) broke out of its prevailing “cup-and-handle” sample on Aug. 14, elevating its prospects of securing further good points within the coming weeks.

Shiba Inu might soar 50%

A cup-and-handle seems when the worth falls and rises in a U-shaped trajectory within the first stage, adopted by a swift transfer sideways or downward within the second. Notably, the worth pattern develops below a standard resistance stage.

Sometimes, cup-and-handle patterns resolve after the worth breaks above the resistance stage; SHIB did the identical on Aug. 14 after rising 27% to $0.000016, as proven beneath.

SHIB/USD every day value chart. Supply: TradingView

Per the rule of technical evaluation, a cup-and-handle breakout goal is decided by measuring the space between the sample’s lowest level and resistance line and including it to the breakout level. Because of this, SHIB might head towards $0.00002253.

In different phrases, a 50% value rally by September.

A nonsense rally, nonetheless?

Basically, Shiba Inu’s 27% intraday value rally on Aug. 14 had no seen catalysts besides a metric showing that SHIB’s burn price surged by 825% in a day. However the quantity of burned SHIB is price solely over $4,500.

Shiba Inu burn price. Supply:

On the entire, nevertheless, the Shiba Inu community has burned over $6.36 million price of SHIB tokens in its lifetime.

As well as, the Shiba Inu rally got here virtually ten days after Binance’s announcement so as to add SHIB help on its cost playing cards issued in Europe. In doing so, the crypto alternate raised SHIB’s potential to search out new customers within the rising European cryptocurrency area.

Weak fundamentals might offset SHIB’s technically bullish bias, nevertheless, given tha cup-and-handle setups have solely a 61% success price in assembly their revenue targets, based on veteran analyst Tom Bulkowski.

Associated: 3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

Due to this fact, a failed cup-and-handle breakout—additionally on a pullback from the 200-day exponential transferring common (200-day EMA; the blue wave within the chart beneath) close to $0.00001755—might have SHIB eye an preliminary correction towards $0.00001306, down 20% from right now’s value.

SHIB/USD every day value chart. Supply: TradingView

Shiba Inu’s cup-and-handle setup might fizzle due to the token’s overbought every day relative power index (RSI). Notably, the RSI has crossed above 70, which generally leads to a interval of sideways consolidation or correction.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a choice.