The Shiba Inu price has been consolidating around a key level, but two unique chart patterns suggest a significant price movement in the coming weeks. If the patterns break out successfully, the SHIB price could almost double. First, the SHIB price formed a golden cross pattern on October 20th, as the 200-day and 50-day Weighted Moving Averages (WMA) crossed each other.
The WMA is often seen as a better type of moving average because it focuses on recent data. Second, the SHIB price has formed a bullish pennant pattern. This pattern is characterized by a long flagpole and a symmetrical triangle. A bullish breakout usually occurs when the two triangles near their confluence levels, which is about to happen.
The other pattern is a cup and handle, which has been forming since the coin peaked at $0.000030 on May 29. This pattern is made up of two peaks and a rounded bottom, followed by a consolidation or a pullback. The handle section has coincided with the triangle section of the bullish pennant. One way to estimate the next target is to measure the distance between the upper and lower sides of the cup pattern.
In this case, the distance was about 170%. A conservative estimate is that the value of SHIB could double from the current level. For that to happen, it needs to rise to the key resistance point at $0.000045, 100% above the current level, and flip the year-to-date high of $0.000045 into a support. On the flip side, a drop below the support at $0.000020, its October 29 high, will invalidate the bullish view.
Such a move could push SHIB down to $0.000015. A key fundamental catalyst for Shiba Inu price is its burn rate, where millions of tokens are placed in an inaccessible wallet. The burn rate dropped by 96% in the last 24 hours but has been accelerating in the past few months. Over 410 trillion Shiba tokens have been burned, bringing the total tokens in circulation at 583 trillion.
The other potential catalyst for the Shiba Inu price is the ongoing crypto bull run. If Bitcoin pierces the key resistance at $100,000, there are chances that other altcoins will continue their bullish breakout.
