Shiba Inu (SHIB) is looking to achieve huge gains in the next weeks after breaking from a cup-and-handle form on Aug. 14. This pattern could turn into a price rally of 50% by September.
Generally, cup-and-handle patterns end when the price crosses above the resistance level, and on Aug. 14 after increasing 27% to $0.000016, SHIB did the same.
According to technical analysis rules, a cup-and-handle breakout target is derived by measuring the distance between the pattern’s lowest point and resistance line and adding it to the breakout point. As a result, SHIB may rise to $0.00002253.
Shiba Inu price rally triggers
The Shiba Inu rally occurred over 10 days after Binance announced that SHIB support would be added to its payment cards issued in Europe. As a result, the crypto exchange increased SHIB’s chances of finding new users in the expanding European cryptocurrency industry.
However, Shiba Inu’s 27% intraday price gain on Aug. 14 had no observable drivers other than a statistic suggesting that SHIB’s burn rate increased by 825% in a day. However, the quantity of burned SHIB is worth slightly more than $4,500.
However, the Shiba Inu network has burned more than $6.36 million in SHIB tokens.
Just a passing trend?
However, considering that cup-and-handle setups only have a 61% success probability in reaching their profit goals, according to seasoned analyst Tom Bulkowski, weak fundamentals can cancel out SHIB’s technically bullish bias.
Due to the token’s overbought daily relative strength index (RSI), Shiba Inu’s cup-and-handle setup may fail. Interestingly, the RSI has risen over 70, heralding a period of consolidation or correction in which prices move sideways.