The latest report for Shiba Inu (SHIB) shows that the meme coin may be able to grow tremendously in the upcoming days. The chances of the rally are strong given the fact that SHIB has managed to break out of its cup-and-handle pattern.
The Cup-and-Handle Pattern is over
According to the performance graph of Shiba Inu, it had been a while since the cup-and-handle pattern for the meme coin had been in play.
However, on August 14, Shiba Inu was able to break out of the pattern and now, things are looking brighter for the meme coin.
In the light of the recent breakout observed, it is being suggested that the upcoming weeks may witness a substantial surge in SHIB’s trading price.
Shiba Inu May Surge 50%
When the price of an asset ends up rising and falling within a trajectory that is U-shaped, then a cup-and-handle pattern is formed. Technically speaking, it is the first stage that a digital asset in a particular trend.
In the second stage, the trajectory moves sideways and if it is not sideways, then it ends up moving in a downward direction.
It is worth noting that under a common resistance level, the price trend for the asset ends up developing.
The cup-and-handle patterns end up getting resolved just when a digital asset rises over the resistance level. On August 14, Shiba Inu faced the same trend and its price has risen by 27% on a particular day.
Following the surge, the trading price of Shiba Inu has moved up to $0.000016 per SHIB.
Shiba Inu’s Price to Surge to $0.00002253
The technical analysis suggests that as the price of Shiba Inu has broken out of the cup-and-handle pattern, its price may move over the resistance level.
The cup-and-handle pattern suggests that it is a distance between the pattern’s resistance line and the lowest point. Following the breakout, the trading price of Shiba Inu may succeed in breaking above the resistance level.
The price prediction shows that the trading price of SHIB may rise over $0.00002253. In terms of jump rate, the price of Shiba Inu may rise by 50%. The particular rally is expected to take place by September.
The surge in Burn Rate formed the August 14 Rally
It was on August 14 when SHIB experienced a jump in its value. The analysts have not been able to pinpoint any particular factor that could push its price higher.
The only possible reason for SHIB’s price surge could be the burning of SHIB on August 14. It was witnessed that on this particular day, SHIB’s burn rate increased by 825%.
At the time of writing, the rice of SHIB is 20% lower compared to its high price on August 14.