The Shiba Inu breakthrough comes almost ten days after SHIB was added to Binance Card.

The Shiba Inu (SHIB) broke out of its dominant cup-and-handle pattern on August 14, increasing its chances of additional gains in the coming weeks.

Shiba Inu can fly 50%
A cup and handle occurs when the price falls and rises in a U-shaped trajectory in the first phase, followed by a rapid sideways or downward movement in the second phase. It is worth noting that the price trend is developing below the general resistance level.

Typically, cup and handle patterns are resolved after price breaks the resistance level; SHIB did the same on Aug. 14, surging 27% to $0.000016 as shown below.

Daily SHIB/USD chart. Source: Trade View
According to the technical analysis rule, the target of a cup-and-handle breakout is determined by measuring the distance between the bottom of the pattern and the resistance line and adding it to the breakout point. As a result, SHIB could approach $0.00002253.

In other words, a price increase of 50% by September.

But a pointless rally?
In fact, the 27% intraday increase in Shiba Inu prices on August 14th had no obvious trigger other than a metric showing that the SHIB burn rate increased by 825% on the day. But the amount of SHIB burned is only worth over $4,500.

Shiba Inu burn rate. Source: Shibburn.com
Overall, however, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens during its existence.

Additionally, the Shiba Inu rally came almost ten days after Binance announced that it would be adding SHIB support to its European-issued payment cards. In this way, the cryptocurrency exchange has increased SHIB’s potential to find new users in the burgeoning European cryptocurrency space.

However, weak fundamentals could offset SHIB’s bullish technical bias, as cup-and-henkel setups only hit their profit targets 61% of the time, according to veteran analyst Tom Bulkowski.

Related: 3 Cryptocurrencies That Could Beat ETH’s Price Thanks to the Ethereum Merger

Therefore, even a pullback from the 200-day exponential moving average (200-day EMA; blue wave in the chart below) near $0.00001755 could result in a failed cup-and-handle breakout that SHIB will initiate an initial correction to $0.00001306. 20% off August 14 price.

Daily SHIB/USD chart. Source: Trade View
The Shiba Inu’s cup-and-handle scheme could fail because the token’s daily Relative Strength Index (RSI) is overbought. Notably, the RSI has crossed 70, which usually leads to a period of sideways consolidation or correction.

Source: CoinTelegraph

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