Shiba Inu (SHIB), one of the most popular meme coins, is drawing attention from crypto analysts as its price action forms a classic “cup and handle” pattern—a technical signal often associated with bullish momentum and potential breakouts. Despite recent market turbulence and a dip in trading activity, this pattern could set the stage for a significant price move in the coming weeks .
Current Market Snapshot
• SHIB is currently trading around $0.00001410, about 20% below its monthly high, reflecting a period of consolidation and reduced demand.
• Trading volume has dropped to $200 million in 24 hours, lagging behind other meme coins like Dogecoin and Pepe.
• Open interest in SHIB futures has also declined, signaling less speculative activity compared to earlier in the month .
Whale Activity and Burn Rate
Large holders, often called “whales,” have trimmed their SHIB positions, with smart money investors reducing their holdings from 14.54 billion to 13.29 billion tokens since April. Whale wallets now hold 96 billion SHIB, down from a recent peak of 100 billion. Meanwhile, the token’s burn rate—a measure of how many coins are permanently removed from circulation—has slowed, with just 13.1 million SHIB burned in the last 24 hours .
Technical Analysis: Cup and Handle Pattern
The main reason for optimism comes from the technical chart. SHIB’s price has formed a bullish pennant, which is part of a larger cup and handle formation. This pattern is recognized by a rounded “cup” followed by a smaller “handle,” and is often seen as a precursor to upward price movement if the price breaks out above the handle .
• The depth of the current cup is about 40%, and the handle is forming as a symmetrical triangle.
• If SHIB breaks out above the handle, analysts project a potential rally toward $0.00002443, which would represent a 70% gain from current levels.
• However, if the price falls below the key support at $0.00001228, the bullish scenario would be invalidated .
Shiba Inu price cup and handle pattern
Broader Market Context
The overall health of the crypto market, especially Bitcoin’s performance, will play a crucial role in SHIB’s trajectory. If the broader market turns bullish, SHIB could benefit from increased capital inflows. Conversely, continued selling pressure or a bearish market could limit any upside .
What to Watch Next
• A confirmed breakout above the handle’s resistance could trigger a strong upward move.
• Keep an eye on trading volume and whale activity for early signs of renewed interest.
• Watch the $0.00001228 support level—if SHIB falls below this, the bullish outlook may not hold.
