Shiba Inu (SHIB) started of their prevailing “cup-and-handle” pattern on August. 14, raising its prospects of securing additional gains within the coming days.
Shiba Inu could soar 50%
Just one cup-and-handle seems once the cost falls and increases inside a U-formed trajectory within the first stage, adopted with a quick move sideways or downward within the second. Particularly, the cost trend develops within common level of resistance.
Typically, cup-and-handle patterns resolve following the cost breaks over the level of resistance SHIB did exactly the same on August. 14 after rising 27% to $.000016, as proven below.
Per the rule of technical analysis, just one cup-and-handle breakout target is dependent upon calculating the space between your pattern’s cheapest point and resistance line and adding it towards the breakout point. Consequently, SHIB could mind toward $.00002253.
Quite simply, a 50% cost rally by September.
A nonsense rally, nevertheless?
Essentially, Shiba Inu’s 27% intraday cost rally on August. 14 didn’t have visible catalysts except a metric showing that SHIB’s burn rate surged by 825% per day. But the quantity of burned SHIB may be worth only over $4,500.
Overall, however, the Shiba Inu network has burned over $6.36 million price of SHIB tokens in the lifetime.
Additionally, the Shiba Inu rally came almost 10 days after Binance’s announcement to include SHIB support on its payment cards issued in Europe. By doing this, the crypto exchange elevated SHIB’s possibility to find new users within the emerging European cryptocurrency space.
We’re very happy to announce that @binance has added SHIB towards the listing of supported tokens for that Binance Card issued in Europe.
Now you can pay with SHIB at 60+ million retailers worldwide. In addition, wake up to eightPercent cash back and nil annual or Forex charges!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 only have a 61% rate of success in meeting their profit targets, based on veteran analyst Tom Bulkowski.
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Therefore, a unsuccessful cup-and-handle breakout—also on the pullback in the 200-day exponential moving average (200-day EMA nowhere wave within the chart below) near $.00001755—could have SHIB eye a preliminary correction toward $.00001306, lower 20% from today’s cost.
Shiba Inu’s cup-and-handle setup could fizzle due to the token’s overbought daily relative strength index (RSI). Particularly, the RSI has entered above 70, which generally results a duration of sideways consolidation or correction.
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