Shiba Inu (SHIB) shows signs of readiness for strong growth. A bullish 'pennant' pattern is visible on the chart, which often signals an upcoming upward breakout. Additionally, the formation of a 'double bottom' pattern at the $0.00001253 level supports the growth, enhancing the likelihood of an upward movement.
Fundamental factors
1. Growth in the number of accounts on the Shibarium network:
o Since the beginning of October, the number of accounts has increased from 127,000 to 177,000, with a significant increase occurring on October 17. The increase in users indicates a growing interest in the Shibarium network, which creates a positive fundamental backdrop for the SHIB token.
2. Growth in transaction activity:
o The number of transactions on the Shibarium network has also increased: from 416 million at the beginning of October to 428 million by the end of the month. This indicates increased activity within the network, which may contribute to the token's value increase.
Technical analysis
• Pennant pattern: A bullish pennant has formed on the chart, consisting of a long vertical line and a symmetrical triangle. A breakout usually occurs when the price approaches the point where the triangle's sides intersect. If an upward breakout occurs, testing of the resistance level at $0.00002150, which was observed on September 27, is expected.
• 50-day moving average: The price has risen above the 50-day EMA, which also indicates a possible upward movement. This serves as additional confirmation of bullish sentiment.
Target levels upon breakout
• $0.00002150: The nearest resistance that will be tested in case of a breakout.
• $0.000030: A target for further growth, corresponding to the level reached on May 29.
Summary
Shiba Inu shows signs of growth, supported by both fundamental and technical factors. The increase in the number of accounts and transactions on the Shibarium network, as well as bullish patterns on the chart, enhance the likelihood of a breakout.
