The Shiba Inu price has held steady in the past few days after finding substantial resistance at $0.00003280. It remained in a tight range even as Bitcoin soared to $103,000 for the first time ever and as sentiment in the crypto industry rose.
Technicals suggest that the SHIB price may jump by 80% in the next few weeks as the Santa Claus rally starts.
Shiba Inu price forms cup and handle
The biggest bullish case for the SHIB price is that it has formed a cup-and-handle pattern on the daily chart. This pattern started forming on March 29, when the coin jumped to a high of $0.00003280. After that, it dropped and formed a rounded bottom pattern and has recently retested the upper side of the cup.
Therefore, the current consolidation is part of the formation of the handle section, which often follows a strong bullish breakout. If we measure the depth of this pattern, as shown below, we see that the coin may jump to $0.0002450 in the next few weeks. If that happens, the coin will jump by about 80% from the current level, an 80% jump.
For this rally to happen, SHIB’s price needs to first jump above the key resistance level at $0.00003280, the upper side of the cup. It also needs to flip the key resistance at $0.0000455, its highest level this year, into a support point.
The bullish case for Shiba Inu is also made by the fact that it formed a golden cross pattern on October 27. This pattern happened as the 50-day and 200-day moving averages flipped each other.
The upward momentum will become invalid if Shiba Inu plunges below the important support at $0.0000226, the lower side of the handle section. A plunge below that level will see it drop to the psychological point of $0.000010.
SHIB chart by TradingView
Catalysts for SHIB rally
The main catalyst for the SHIB price rally will be the fact that there are odds that cryptocurrencies could continue doing well. The crypto fear and greed index has moved to the extreme greed area while the altcoin season is accelerating. Also, in most cases, assets rise ahead of Christmas because of the Santa Claus rally.
More data shows that Shiba Inu’s futures open interest has remained elevated, a sign of demand. It had an open interest of over $157 million, slightly lower than this month’s high of $184 million.
The other potential catalyst fo the Shiba Inu price is that the network has continued burning millions of tokens each day. This makes SHIB the biggest deflationary meme coin, as its supply will continue falling.
Therefore, a combination of strong technicals and fundamentals means that Shiba Inu’s price may soon have a strong bullish breakout.
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