The price of Shiba Inu continues to consolidate near key levels, but two unique chart patterns suggest a significant increase in the future. If the breakout from this pattern is successful, the value of SHIB could double.
Technical indicators suggest that the price of Shiba Inu may double soon.
The daily chart shows that the SHIB price has formed three extremely rare patterns, indicating more upward potential in the coming weeks. First, the token formed a golden cross pattern on October 20, as the 200-day and 50-day weighted moving averages (WMA) crossed each other. WMA is often seen as a better moving average as it focuses on recent data.
Secondly, the SHIB price has also formed a bullish triangular flag pattern, characterized by a long flagpole and a symmetrical triangle. This flagpole pattern appeared between November 4 and 12. In most cases, a bullish breakout occurs when the two triangles approach their convergence level, which is about to happen.
Another pattern is the cup and handle pattern, which has been forming since the coin peaked at $0.000030 on May 29. This pattern consists of two peaks and a rounded bottom, followed by consolidation or pullback. The cup handle part overlaps with the triangular part of the bullish flag.
One way to estimate the next target is to measure the distance between the upper and lower sides of the cup pattern. In this case, the distance is approximately 170%. Therefore, a conservative estimate suggests that the value of SHIB could double from its current level. To achieve this, it needs to rise to the key resistance level of $0.000045, which is 100% higher than the current level. It should also turn this year's high of $0.000045 into a support level.
On the other hand, a break below the support level of $0.000020 (the high on October 29) would invalidate the bullish outlook. This move could push SHIB down to $0.000015.
The rate at which SHIB is being burned has decreased, but the upward trend remains.
A key fundamental catalyst for the rise in Shiba Inu's price is its burn rate, with millions of tokens placed in an inaccessible wallet. Data from Shiburn shows that the burn rate has decreased by 96% in the past 24 hours, down to 352,413.
Nevertheless, this trend has been accelerating over the past few months. Over 410 trillion Shiba tokens have been burned, bringing the total supply of tokens in circulation to 583 trillion. The Shiba Inu burn is voluntary, with fees coming from platforms within the ShibaSwap and Shibarium ecosystems.
Another potential catalyst for the price of Shiba Inu is the ongoing cryptocurrency bull market. If Bitcoin breaks through the key resistance level of $100,000, other altcoins are likely to continue their bullish breakout.
