Cryptocurrency

Shiba Inu (SHIB) Breaks Out Of Its Dominant “Cup and Handle” Pattern. What Does This Imply? Details

Over the past 24 hours, Shiba Inu (SHIB), the second-largest dog-themed token in the market, has been recording massive gains after months of trending sideways.

A look at the chart shows that Shiba Inu (SHIB) has managed to break out of its dominant “cup and handle” pattern, which could lead to more positive trends in the coming weeks.

Read Also: Binance Card Now Supports Shiba Inu (SHIB). Here’s Why This Is Important

When a Chart Displays a Cup and Handle Pattern?

A cup and handle price pattern surfaces when the price of an asset falls or rises in a U-shaped trajectory or in the form of a cup with a handle, where the cup is in the shape of a U and the handle has a slight downward drift.

This pattern is seen as a bullish signal for any asset under observation. The right hand of the pattern usually experiences lower trading volume. The formation of the pattern may be as short as seven weeks or as long as 65 weeks.

Additionally, the cup and handle pattern usually resolves after the price of the asset breaks above the resistance level. It’s worth noting that Shiba Inu (SHIB) fulfilled this rule after surging 30% on the 14th of August to trade above $0.000016.

Source: TradingView

Read Also: Shiba Inu (SHIB) Burn Rate Surges 200% Following the Unveiling of Crypto Visa Card: Details

What Could Happen To Shiba Inu (SHIB) Price in Coming Weeks?

According to the rule of the pattern, the break-out target of a cup and handle is determined by measuring the distance between the lowest point and resistance line of the pattern and adding it to the break-out point.

In the case of Shiba Inu (SHIB), the next price target in the coming weeks could be $0.00002253 level. This implies that SHIB could print a relatively 50% price rally by September.

At the time of filing this report, SHIB is trading at $0.00001622, with a relatively 18% price upsurge in the last 24 hours, according to CoinMarketCap. The data also shows that Shiba Inu has displaced Polygon (MATIC) to occupy the 12th position in the market.


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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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