The momentum in the cryptocurrency market continues to surge, notably driven by the meteoric rise of Shiba Inu (SHIB), which has witnessed an impressive double-digit surge, securing its position just above the $0.00001 mark. This surge in SHIB’s value has been reinforced by the emergence of a cup and handle pattern, projecting a potential breakout target of $0.000011.
Market Dynamics in December
Amidst the crypto market’s fervour, the spotlight has predominantly been on Bitcoin’s price trajectory, with its ascent beyond $44,000, hinting at a possible surge towards $50,000 by year-end. While altcoins have shown significant performance, they continue to trail behind Bitcoin, reflecting Bitcoin dominance currently standing at 51.4%, as per data sourced from CoinGecko.
Shiba Inu’s Ascending Trajectory
SHIB’s recent surge, marking a 15.65% uptick since breaking above a prolonged descending trendline, signifies a significant shift in its market dynamics. For an extended period, SHIB faced resistance at $0.0001, hindering its price movement. However, breaching this barrier has paved the way for an optimistic outlook, potentially inviting more buyers into the market, and fostering an upward trend aiming for $0.0001.
Indicators and Insights
The Relative Strength Index (RSI) corroborates SHIB’s bullish momentum, entering the overbought territory above 70. Traders are advised to closely monitor RSI trends, anticipating retracements signalled by movements back into the neutral zone.
The convergence of moving averages (MAs) on the charts notably bolsters SHIB’s bullish trajectory. The recent bullish cross involving the 21-day Exponential Moving Average (EMA) surpassing the 200-day EMA strengthens the bullish narrative.
However, the anticipated crossover between the 50-day EMA and the 200-day EMA is poised to trigger the next breakout, suggesting the importance of higher support levels, especially above $0.00001, to sustain the accrued gains and set the stage for an upward move aiming beyond $0.00002.
Also Read: Dogecoin vs. Shiba Inu: A Comprehensive Guide To Memecoin Investments
Cup and Handle Pattern Analysis
The Moving Average Convergence Divergence (MACD) indicator further supports SHIB’s upward trend, signalling buy indicators in short and long-term time frames. Notably, the validation of a cup and handle pattern on the four-hour chart positions SHIB for a potential 19% surge towards $0.000011. This pattern forecasts a bullish breakout with a target price equivalent to the cup’s height projected above the neckline resistance at $0.0000095.
Traders’ Strategies and Key Levels
Traders identifying the cup and handle pattern have initiated new long positions above the neckline resistance, employing a strategic stop loss slightly below this point. Profit booking strategies may commence upon reaching profitable positions, yet considering the analysis, holding onto the uptrend targeting $0.000011 in forthcoming sessions might prove prudent.
In the event of an abrupt trend reversal, $0.00001 emerges as a crucial support level. Additionally, traders are advised to closely monitor pivotal Moving Averages, including the 21 EMA, 50-EMA, and 200 EMA, for potential market cues while trading SHIB.