Шиба Ину (ШИБ) broke out of its prevailing “чөйчөк жана тутка” pattern on Aug. 14, raising its prospects of securing additional gains in the coming weeks.
Shiba Inu could soar 50%
A cup-and-handle appears when the price falls and rises in a U-shaped trajectory in the first stage, followed by a swift move sideways or downward in the second. Notably, the price trend develops under a common resistance level.
Typically, cup-and-handle patterns resolve after the price breaks above the resistance level; SHIB did the same on Aug. 14 after rising 27% to $0.000016, as shown below.
Per the rule of technical analysis, a cup-and-handle breakout target is determined by measuring the distance between the pattern’s lowest point and resistance line and adding it to the breakout point. As a result, SHIB could head toward $0.00002253.
In other words, a 50% price rally by September.
A nonsense rally, nonetheless?
Fundamentally, Shiba Inu’s 27% intraday price rally on Aug. 14 had no visible catalysts except a metric көрсөтүү that SHIB’s burn rate surged by 825% in a day. But the amount of burned SHIB is worth only over $4,500.
On the whole, however, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens in its lifetime.
In addition, the Shiba Inu rally came almost ten days after Binance’s кулактандыруу to add SHIB support on its payment cards issued in Europe. In doing so, the crypto exchange raised SHIB’s potential to find new users in the emerging European cryptocurrency space.
Биз тууралуу кубанычтуулук менен билдиребиз @binan менен Европада чыгарылган Binance Card үчүн колдоого алынган Токендердин тизмесине SHIB кошту.
Эми сиз SHIB менен дүйнө жүзү боюнча 60+ миллион сатуучу менен төлөй аласыз. Андан тышкары, 8% кэшбэкке жана нөл жылдык же FX жыйымдарына ээ болуңуз!https://t.co/0Xj7IXPyt0 pic.twitter.com/FqINtnHFWx
- Shib (@Shibtoken) August 5, 2022
Weak fundamentals could offset SHIB’s technically bullish bias, however, given tha cup-and-handle setups have only a 61% success rate in meeting their profit targets, according to veteran analyst Tom Bulkowski.
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Therefore, a failed cup-and-handle breakout—also on a pullback from the 200-day exponential moving average (200-day EMA; the blue wave in the chart below) near $0.00001755—could have SHIB eye an initial correction toward $0.00001306, down 20% from today’s price.
Shiba Inu’s cup-and-handle setup could fizzle because of the token’s overbought daily relative strength index (RSI). Notably, the RSI has crossed above 70, which typically results in a period of sideways consolidation or correction.
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Source: https://cointelegraph.com/news/shiba-inu-eyes-50-rally-as-shib-price-enters-cup-and-handle-breakout-mode