Shiba Explodes As Price Show Cup-And-Handle Breakout Mode; 50% Surge More Likely

The Shib Army is in a jovial mood as the price of the dog-themed altcoin Shiba Inu continues to surge; and as it shows a cup-and-handle pattern, investors are optimistic SHIB could achieve a 50% more price surge.

The past days were nothing but historic for the Shiba Inu community as the altcoin officially rolled out the early testing version of its mobile Collectible Card Game (CCG) "Shiba Eternity" in Vietnam. Moreover, SHIB holders were rewarded for their diamond hands as they saw the altcoin rally over the weekend with Shiba Inu's skyrocketing 27% increase at $0.00001616.

But, this is not the only thing market watchers and investors are excited about since the SHIB's movement paints a cup-and-handle pattern. This pattern is a technical indicator where the price trend appears like a cup in a "U" shape trajectory in the first stage ensued by a downward movement, which is referred to as the "handle."

When the price enters the handle mode, it is an indicator of a buying opportunity, which typically sends the asset's price to new heights after breaking above the resistance level. This kind of price trend typically falls between seven weeks to more than a year.

In the cup-and-handle pattern, the breakout target is obtained by the distance between the lowest point and the resistance line and adding the result to the breakout point. Based on this rule, Shiba Inu could shoot up to $0.00002253, a nearly 40% increase from the current $0.00001621 price and 50% from the previous $0.00001500.

Interestingly, the impressive price rally of Shiba Inu appears like it was not backed by any catalysts, metric-wise. The only remarkable metric during the trend was the 825% increase in burn rate or around 292,259,359 burnt SHIB equivalent to approximately $ 4,500.

What contributed to the rally is the hype of the launch of "Shiba Eternity," the imminent announcement of Shibarium and the number of cryptocurrency exchange platforms listing SHIB, including Binance's recent announcement about adding SHIB support on its payment cards released in Europe.

It is worth noting that this is not the first time that a price rally was driven by a speculative frenzy. Shiba Inu experienced the same price rally in June when analysts admitted that SHIB's price surge was hard to explain.

As of 12:39 a.m. ET on Monday, SHIB was trading up 19.87% at $0.00001607 with a 24-hour volume of $0.00001607 based on the latest data from CoinMarketCap.