Shiba Inu (SHIB) broke its prevailing “cup and handle” pattern on August 14which increases your prospects of making more profits in the coming weeks.
Shiba Inu could shoot up 50%.
A cup and handle pattern appears when the price falls and rises in a U-shaped path in the first stage., followed by a rapid lateral or downward movement in the second. In particular, the price trend develops under a common resistance level.
Typically, the cup and handle patterns resolve after the price breaks above the resistance level.; SHIB did so on August 14 after rising 27% to $0.000016, as shown below.
According to the rule of technical analysis, the target of the cup and handle breakout is determined by measuring the distance between the lowest point of the pattern and the resistance line and adding it to the breakout point. As a result, SHIB could head towards $0.00002253.
In other words, a 50% price hike for September.
A meaningless spike?
Fundamentally, Shiba Inu’s 27% intraday price spike on August 14 had no visible catalystsexcept for one metric that showed that SHIB burn rate increased by 825% in one day. But the amount of SHIB burned is only worth about $4,500.
Nevertheless, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens in its lifetime.
Also, The Shiba Inu rally came nearly ten days after the announcement that Binance will add SHIB support to its European-issued payment cards. In doing so, the crypto exchange elevated SHIB’s potential to find new users in the emerging European crypto space.
We are pleased to announce that @binance has added SHIB to the list of supported tokens for the Binance Card issued in Europe.
You can now pay with SHIB at 60+ million merchants worldwide. Furthermore, get up to 8% cashback and zero annual or FX fees!https://t.co/0Xj7IXPyt0 pic.twitter.com/FqINtnHFWx
— Shib (@Shibtoken) August 5, 2022
We are pleased to announce that Binance has added SHIB to the list of tokens supported by Binance Card issued in Europe.
Now you can pay with SHIB at more than 60 million merchants around the world. Plus, get up to 8% cashback and zero FX or annual fees!
However, weak fundamentals could offset SHIB’s technically bullish bias as cup and handle configurations have only a 61% success rate in meeting their profit goalsaccording to veteran analyst Tom Bulkowski.
A failed cup and handle break —also on a retracement of the 200-day exponential moving average (200-day EMA; the blue wave on the chart below) near $0.00001755— could cause SHIB to have an initial correction towards $0.00001306, which would be 20% lower than the current price.
Shiba Inu Cup and Handle Setup Might Fade due to overbought relative strength index (RSI). In particular, the RSI has crossed above 70, which usually leads to a period of consolidation or sideways correction.
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