Shiba Inu recently recorded a significant price surge after stagnating for months in the last 24 hours. According to Trading View, this development saw the meme token break out of its dominant “cup-and-handle” trend, which could signify what to expect in the future.
Significance of Shiba Inu’s “Cup and Handle” Break Out
A cup-and-handle price trend occurs when an asset’s value drops or increases in a U-shaped trajectory or a cup with a handle form. The cup takes the shape of a “U”, and that handle has a slight slump movement.
This pattern is seen as a bullish signal for any asset under observation. The right hand of the pattern usually experiences lower trading volume. The pattern formation may be as short as seven weeks or as long as 65 weeks.
Additionally, the cup and handle pattern usually resolves after the asset price breaks above the resistance level.
Hence the SHIB token fulfilled this rule after surging 30% on the 14th of August to trade above $0.000016.
What This Means for Shiba Inu
It is believed that a cup-and-handle breakout is the distance measurement between the pattern’s lowest point and resistance level and adding it to the breakout point. Therefore, SHIB could rally by 50% in September, heading towards $0.00002253
The second biggest memecoin is trading at $0.00001622, with a relatively 18% price surge in the last 24 hours, according to CoinMarketCap. Additionally, Shiba Inu has displaced Polygon (MATIC) to occupy the 12th position in the market.