The Shiba Inu (SHIB) price jumped 2.7% on Friday, reaching $0.000018 as the broader crypto market rallied. This surge comes as Bitcoin approaches $70,000, reigniting “Uptober” enthusiasm among traders. Technical analysis suggests SHIB may be poised for significant gains, with the formation of an inverted head and shoulders pattern signaling the end of its recent correction phase.

Since mid-June, SHIB has struggled to break above $0.00002. However, the daily chart reveals this consolidation has formed an inverted head and shoulders pattern – a bullish reversal indicator. This pattern, characterized by three troughs, suggests growing buyer interest at key support levels.

October’s rally has already pushed SHIB from $0.00001552 to $0.0000187, a 21.2% increase. The token’s market cap now stands at $11.04 billion. If the pattern plays out as expected, SHIB could see another 8% climb to challenge the $0.00002 neckline resistance. A successful breakout above this level could trigger a impressive 48% rally, potentially sending SHIB to $0.00003.

Supporting this bullish outlook is a potential golden cross between the 50-day and 100-day moving averages. This technical indicator often precedes significant price movements.

As Bitcoin nears $70,000, trader attention is increasingly shifting towards high-leverage meme coins like SHIB and Dogecoin. Social media discussion around these assets has reached its highest level in five months, according to data from Santiment. However, this surge in interest comes with a note of caution – historically, extreme sentiment can sometimes precede market reversals.

While the technical setup appears bullish for SHIB, investors should remain aware of potential resistance at $0.00002. A rejection at this level could lead to extended consolidation, delaying the projected rally.

Key points:

1. SHIB is forming an inverted head and shoulders pattern, signaling a potential end to its correction phase.

2. The 20-day EMA is providing price support, with a potential bullish crossover between the 50- and 100-day EMAs strengthening the case for a breakout.

3. If selling pressure emerges at the $0.00002 resistance level, SHIB could face extended consolidation, postponing the anticipated rally.

Investors should conduct thorough research and consider market conditions before making investment decisions. Cryptocurrency markets can be highly volatile, and past performance does not guarantee future results.