Shiba Inu preps for a big rally as Shibarium accounts jump

Shiba Inu token may show a strong uptrend after forming a bullish pennant formation and as the number of accounts on Shibarium increases.

Shiba Inu (SHIB), the second largest meme coin in the industry, was trading at $0.000018, as it has been for the past few weeks. It’s gained nearly 70% from this year’s low.

SHIB’s consolidation mirrors the consolidation of other cryptocurrencies that has stalled recently. Bitcoin (BTC), for example, remained just above $72,000 this week.

A potential catalyst for Shiba Inu is that the Shibarium network is seeing positive momentum this week. Data from ShibariumScan shows that the number of accounts on the network increased from 127,000 to 177,000 on October 1. Most of these accounts were created on October 17th.

The number of transactions on the network also continued to rise, with the cumulative total rising from 416 million to 438 million earlier this month.

Activity on Shibarium, Shiba Inu’s layer-2 network, is important because it is processed using the BONE token. Most of these BONE tokens are then converted into SHIB and then burned.

The Shiba Inu could also benefit from a potential rally in Bitcoin above its all-time high at $73,800, as such a move could trigger the meme coin rally.

Shiba Inu forms bullish 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 also formed a bullish pennant formation, characterized by a long vertical line and symmetrical triangle formation. An uptrend typically occurs when the triangle approaches its confluence.

The Shiba Inu has also broken above the 50-day moving average, increasing the possibility of a bullish trend.

If this happens, SHIB could retest resistance at $0.00002150, the September 27 high. A break above this point could signal potential gains towards the May 29 high of $0.000030, which represents a 60% increase from the current price.