Shiba Inu token may stage a strong bullish breakout after forming a bullish pennant pattern and as the number of accounts in Shibarium rises.
Shiba Inu (SHIB), the second-biggest meme coin in the industry, was trading at $0.000018, where it has been for the past few weeks. It has gained about 70% from its lowest level this year.
SHIB’s consolidation has mirrored that of other cryptocurrencies, which have stalled recently. For instance, Bitcoin (BTC) has remained slightly above $72,000 this week.
One potential catalyst for Shiba Inu is that the Shibarium network has seen positive momentum this week. Data from ShibariumScan indicates that the number of accounts in the network has increased to 177,000, up from 127,000 on Oct. 1. Most of these accounts were created on Oct. 17.
The number of transactions in the network has also continued to grow, with the cumulative total rising to 438 million, up from 416 million earlier this month.
Activity in Shibarium, Shiba Inu’s layer-2 network, is significant because it is processed using the BONE token. Most of these BONE tokens are then converted into SHIB and subsequently burned.
Shiba Inu may also benefit from a potential Bitcoin rebound above its all-time high of $73,800, as such a move could trigger a meme coin rally.
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Shiba Inu has formed a bullish pattern
SHIB chart by TradingView
The daily chart shows that Shiba Inu formed a double-bottom pattern at $0.00001253 and has since moved above the neckline at $0.000016.
It has also formed a bullish pennant pattern, characterized by a long vertical line and a symmetrical triangle pattern. A bullish breakout typically occurs as the triangle approaches its confluence point.
Shiba Inu has also risen above the 50-day moving average, increasing the likelihood of a bullish breakout.
If this occurs, SHIB could retest the resistance at $0.00002150, its highest level on September 27. A break above that point would suggest potential gains toward $0.000030, the highest level on May 29, representing a 60% increase from the current price.
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