Rare Shiba Inu Price Patterns Hint SHIB Could Double Soon

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As an analyst with over two decades of experience in the cryptocurrency market, I have seen my fair share of market fluctuations and unusual chart patterns. The current state of Shiba Inu (SHIB) has caught my attention due to three unique and rarely-seen chart patterns that suggest a significant move is imminent.

The current Shiba Inu price is holding steady near a crucial point, yet two distinct chart formations hint at a substantial price surge. Should these patterns break successfully, Shiba Inu’s value might nearly double.

Technicals Hint Shiba Inu Price Could Double Soon

The daily chart indicates that Shiba Inu’s price has formed three unusual patterns, suggesting potential growth in the upcoming weeks. Initially, the coin exhibited a golden cross chart pattern on October 20th when its 200-day and 50-day Weighted Moving Averages (WMA) intersected. The WMA is considered a more accurate moving average as it emphasizes recent data.

Next, it’s worth noting that the price of SHIB has developed a bullish pennant structure as well. This pattern is distinguished by a long flagpole and a symmetrical triangle. The flagpole was established between November 4 and 12. Typically, a bullish breakout occurs when the two triangles approach their convergence points, which seems imminent in this case.

An alternative formation is known as a cup and handle, which began shaping since the cryptocurrency reached $0.000030 on May 29. This pattern consists of two peaks and a curved trough, followed by a period of consolidation or retracement. The handle segment aligns with the triangle part of the bullish pennant.

One method for approximating the upcoming target is by calculating the gap between the upper and lower edges of the cup pattern. In this scenario, the distance is approximately 170%. This implies that the Shiba Inu (SHIB) coin could potentially double from its current value. To reach this level, it would need to increase to the crucial resistance point at $0.000045, which is 100% above its current position. Additionally, it must convert the year-to-date high of $0.000045 into a support level.

In simpler terms, if the price falls below the support level at $0.000020 (which was its highest point on October 29), it would contradict the positive outlook. This drop might potentially take Shiba Inu down to $0.000015.

SHIB Burn Rate Slips But Upward Trajectory Remains

The primary driving factor behind the fluctuation of Shiba Inu’s price is its token burning mechanism, where vast quantities of coins are locked away in an unreachable wallet. As per Shibburn’s data, there has been a significant decrease of approximately 96% in the burn rate over the past 24 hours, now standing at around 352,413 tokens.

Despite this setback, the trend has shown a significant increase over the last few months. To date, more than 410 trillion Shiba tokens have been destroyed, reducing the total circulation to approximately 583 trillion. The destruction of Shiba Inu tokens occurs voluntarily and through fees collected in platforms like ShibaSwap and Shibarium within its ecosystem.

Another factor that could drive up Shiba Inu’s price is the ongoing cryptocurrency market surge. If Bitcoin manages to surpass its crucial resistance level of $100,000, it may pave the way for other altcoins to experience a bullish rally.

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2024-11-22 13:26