Shiba Inu recently broke through its prevailing cup and handle pattern on the 14th of August, where it raised the prospects of securing some additional gains in the next couple of weeks. For those who are unaware, a cup and handle pattern comes up when the price sees a fall and a rise in a U-shaped trajectory in the very first stage.
This is then often followed by a swift move horizontally, or downward in the second. This results in the price trend developing under a very common resistance level. Usually, most cup and handle patterns end up resolving after the price breaks above the level of resistance. This is what the cryptocurrency did on the 14th of August after it rose 27% to $0.000016.
Shiba Inu Has Been Surging In Its Price Over The Last 10 Days
According to the rules of technical analysis, the breakout target for such a pattern is readily determined when one measures the distance between the lowest point of the pattern, as well as the resistance line- which is then added to the breakout point. As a result of this, Shiba Inu could find itself headed towards a price range of $0.00002253.
This simply entails a price rally of 50% by September. On a fundamental level, the intraday price rally of 27% by the cryptocurrency on the 14th of August had no such visible catalysts except a simple metric that showed the burn rate of the cryptocurrency surging by 825% in a single day.
One also needs to understand that the rally of Shiba Inu came almost 10 days after the announcement of Binance to add the SHIBA support on its payment cards through Europe.