Shiba Inu price and other meme coins have wavered this week as the recent momentum waned and as Bitcoin failed to cross the $100,000 resistance. Still, technicals suggest that the SHIB coin may be about to go parabolic after forming four bullish patterns.
Shiba Inu Price Analysis: Technicals Hint Parabolic Breakout Rally
The daily chart shows that Shiba Inu price has formed several rare patterns that point to further gains in the coming days. First, the coin created a falling wedge pattern between March and September. This pattern is made up of two descending trendlines and converging trendlines. The upper line connects the higher lows, while the lower one connects the lower lows.
Second, Shiba Inu has formed a bullish pennant pattern, which is shown in green. This pattern has a long vertical line and a symmetrical triangle pattern. A bullish breakout happens when the triangle is about to reach its confluence level.
Third, the coin is in an impulse Elliot wave pattern, which is made up of five steps. The first one is bullish, followed by a brief retreat, and then the third one is the longest one. The coin is now in the fourth part of the wave, which could result in the fifth wave, which is often highly bullish.
Further, and most importantly, it has formed a cup and handle chart pattern. This pattern has a rounded bottom and some consolidation or a pullback. It often leads to a strong breakout when the handle section finishes.
Therefore, the value of SHIB will likely go parabolic if the coin jumps above the upper side of the cup. If we measure its depth, the potential Shiba Inu prediction is $0.00004580, a few points above the year-to-date high.
Conversely, a drop below the key support at $0.00002150, its highest point on September 27 will invalidate the SHIB price bullish view. If this happens, it will increase the risk of SHIB falling to $0.000016, its August 24 high.
SHIB Coin Has Strong Fundamentals
Shiba Inu has some strong fundamentals that could push it higher in the coming days. Its futures open interest have moved sideways since November 10. This performance could be the calm before the storm in the near term.
Millions of Shiba Inu coins are being burned each day because of the increasing transactions in its ecosystem like Shibarium and ShibaSwap. BONE fees in these networks is transformed into SHIB and burned.
There is regulatory clarity in the United States with Donald Trump set to become the president. Just this week, Tornado Cash scored a major court victory as judges ruled that its smart contract was notthe property of a foreign national.
The post Shiba Inu Price Set To Go Parabolic As 4 Rare Patterns Forms appeared first on CoinGape.
