Shiba Inu (SHIB), the popular meme coin, has been consolidating in recent days despite Bitcoin’s historic surge and overall bullish crypto market sentiment. However, technical analysis suggests that SHIB is primed for a significant 80% rally in the coming weeks, fueled by the upcoming Santa Claus rally.
Cup and Handle Formation: A Bullish Signal
A key factor driving this bullish outlook is the formation of a cup and handle pattern on SHIB’s daily chart. This pattern, which began forming on March 29th, is often considered a strong bullish indicator. The current consolidation phase is likely the formation of the handle, which typically precedes a powerful upward breakout.
Based on the depth of the cup, analysts predict that SHIB could soar to $0.0002450 in the near future. This represents an 80% increase from its current price level. To trigger this rally, SHIB must first break above the key resistance level of $0.00003280 and subsequently flip the $0.0000455 resistance into a support level.
Golden Cross and Elevated Futures Interest
Further bolstering the bullish case for SHIB is the formation of a golden cross on October 27th. This pattern, characterized by the 50-day moving average crossing above the 200-day moving average, is often seen as a strong bullish signal.
Additionally, the elevated futures open interest for SHIB indicates strong demand from traders. The current open interest of over $157 million suggests that market participants are anticipating significant price movement.
Deflationary Tokenomics and Santa Claus Rally
Shiba Inu’s deflationary tokenomics, characterized by ongoing token burns, further enhances its long-term potential. As the supply of SHIB decreases, its value could appreciate over time.
Moreover, the upcoming Santa Claus rally, a historical period of strong market performance, could provide additional tailwinds for SHIB. This seasonal trend, combined with the current bullish sentiment in the crypto market, could further fuel the coin’s upward momentum.
Potential Downside Risk
While the technical and fundamental factors suggest a strong bullish outlook for SHIB, it’s important to consider potential downside risks. If SHIB fails to break above the $0.00003280 resistance level and plunges below the $0.0000226 support, it could trigger a significant sell-off, potentially leading to a drop to the $0.000010 level.
In conclusion, Shiba Inu’s price is poised for a substantial 80% rally in the coming weeks, driven by a combination of technical factors, strong fundamentals, and the upcoming Santa Claus rally. However, investors should exercise caution and monitor market developments closely.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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