Originally published on: November 08, 2024
The cryptocurrency Shiba Inu (SHIB) has been quietly making moves in the market, with a 78.50% jump year-to-date. While it may have been overshadowed by other memecoins like Dogecoin and Pepe, SHIB is showing signs of being a “sleeping giant” in this bull market.
One of the key indicators pointing towards a potential rally for SHIB is the formation of a cup-and-handle pattern. This bullish chart pattern is named for its distinctive shape that resembles a teacup, followed by a handle. According to technical and fractal indicators, SHIB could be gearing up for a breakout move above the neckline resistance at around $0.00002032.
If SHIB manages to break out of this pattern, it could rally towards its target of around $0.00003545, representing a 90% increase from current price levels. This target falls within a key resistance area from March 2024, suggesting a significant upside potential for SHIB in the coming months.
One of the reasons for SHIB’s underperformance compared to Dogecoin is Elon Musk’s focus on promoting governmental efficiency, which shares the same initials as DOGE. However, with Dogecoin’s RSI indicating it is “overbought” while SHIB’s RSI remains in a neutral area, there is a possibility of a capital rotation from DOGE to SHIB, fueling a potential rally for SHIB.
Additionally, the proposed establishment of a Strategic Hub for Innovation and Blockchain (S.H.I.B.) in a US city could enhance SHIB’s value proposition by developing new applications and use cases for the cryptocurrency.
While this article does not offer investment advice, the bullish indicators for SHIB suggest that the cryptocurrency could be on the verge of a breakout. Keep an eye on SHIB as it continues to show signs of being a “sleeping giant” in this bull market. Subscribe to our newsletter for more insights and updates on the cryptocurrency market.
