Shiba Inu (SHIB) is showing a textbook Cup and Handle Pattern on the daily chart, a bullish continuation structure signaling the potential for a significant breakout. Currently trading around $0.00002216, SHIB seems poised for a dramatic move higher as it approaches the handle's resistance.
Key Pattern Insights:
Cup Formation:
The rounded base indicates a prolonged accumulation phase, signaling a shift from a bearish sentiment to a neutral or bullish outlook.
SHIB retraced steadily, forming higher lows and maintaining strong support around the $0.00001700-$0.00001900 range.
Handle Development:
The price is consolidating in a descending channel, forming the classic "handle" portion of the pattern.
This consolidation is a healthy retracement, allowing bulls to recharge before attempting a breakout.
Breakout Target:
Upon breaking the neckline resistance at $0.00002500, the Cup and Handle's projection targets $0.00004400, nearly doubling the current price.
The measured move aligns with the height of the cup added to the breakout point.
Support and Resistance Levels:
Immediate Support: $0.00002100 remains critical for the handle's continuation. A failure to hold this level could delay the breakout but does not invalidate the bullish structure.
Key Resistance: $0.00002500 acts as the neckline. A confirmed daily close above this level will ignite the next leg higher.
Momentum and Volume:
The volume profile confirms increasing interest during the cup's formation, with a slight tapering during the handle—a pattern characteristic of strong setups.
Momentum indicators suggest room for growth, further supporting the bullish outlook.
Potential Scenarios:
Bullish Breakout: A decisive breakout above $0.00002500 opens the door for SHIB to rally toward $0.00004400, completing the Cup and Handle formation.
Pullback and Retest: A brief retest of the $0.00002100 support zone before resuming upward momentum would create an ideal entry opportunity for bulls.