Shiba Inu (SHIB) has gained significant traction over 2024, and market analysis now hints that SHIB may be on the brink of a notable rally in this bull market.
Key technical indicators and other factors suggest SHIB could see up to an 87% to 434% price increase, riding the wave of renewed interest in memecoins and crypto assets at large.
Cup-and-handle pattern suggests SHIB price breakout is near
As of November 2024, Shiba Inu has gained over 78.7% this year, trading around $0.0000191 at the time of writing.
While this rise is notable, SHIB has still lagged behind other memecoins like Dogecoin (DOGE) and Pepe (PEPE), which have recorded more substantial gains.
However, technical analysis indicates that SHIB may be set for an exponential movement soon, following a bullish cup-and-handle chart pattern formation.
The cup and handle pattern is a bullish technical chart formation resembling a tea cup. It consists of a rounded bottom that forms after a price decline, showing consolidation and eventual recovery to previous highs (cup) and a smaller downward-sloping consolidation after the cup, signalling a potential breakout (handle).
The indicator often signals a possible breakout, where the price rises after a period of consolidation. At the time of writing, this pattern shows that SHIB was in the handle formation stage, suggesting an imminent upward move to break the neckline resistance level at $0.00002032.
If this becomes the case, SHIB’s next move would be breaching its cup and handle target of around $0.00003545. At current prices, the predicted surge would represent an 87% price rally.
Historically, similar patterns in SHIB price action have led to gains between 30% and 150%, depending on supporting market factors. SHIB holders are hoping history repeats itself.
Adding to the bullish outlook, SHIB’s daily relative strength index (RSI) of 58.61 shows bullish conditions, implying that the token may be primed for more upside.
When combined with a strong support level at $0.00001880, SHIB appears to be in a position for a promising recovery.
Moreover, one analyst sees a possibility of SHIB reclaiming its all-time high of approximately $0.00009 in this bull market. This represents a potential 434% rally from the key support level.
Read also: Binance’s 23rd Proof of Reserves Highlights Notable Shiba Inu (SHIB), XRP Holdings
Shiba Inu ecosystem initiatives could drive further growth
Besides technical signals, Shiba Inu’s ecosystem is expanding with initiatives that may further support SHIB’s rally.
Shytoshi Kusama, the project’s community-appointed leader, recently proposed establishing a Strategic Hub for Innovation and Blockchain (S.H.I.B.) in the United States, to create a major global centre for blockchain technology and sustainable development.
Borrowing the concept of the Elon Musk-initiated Department of Government Efficiency (D.O.G.E) adopted by Donald Trump, the proposed hub is aimed at building awareness and attracting developers, investors, and businesses interested in blockchain technology.
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