Shiba Inu price breaks out as a rare bullish pattern forms

Shiba Inu saw a price increase for four consecutive days as both Bitcoin and other altcoins rallied ahead of the upcoming U.S. general election.

The second-largest meme coin in the crypto space, Shiba Inu (SHIB), climbed to $0.00001870, marking a 72% increase from its lows in September. This rally coincided with similar gains in other popular meme coins. Dogecoin (DOGE) surged 14%, while Pepe (PEPE), Popcat (POPCAT), and Floki (FLOKI) all posted gains of over 10%. Meanwhile, Bitcoin surpassed the key resistance level of $71,000, with bulls targeting its all-time high.

There are three potential factors driving the strong performance of Shiba Inu and other meme coins:

• Election Speculation: Prediction markets like Polymarket, Kalshi, and PredictIt show a strong likelihood of a Donald Trump win in next week’s U.S. presidential election. Polymarket places Trump’s odds at 66%, while Kalshi and PredictIt have him at 60%. Another Polymarket poll suggests that Republicans are favored to win both the popular vote and the Presidency, a scenario that has not been seen in decades. A Trump victory is generally seen as positive for the crypto market, given his pledge to appoint crypto-friendly regulators and his personal investment in the space.
• Geopolitical Relief: Shiba Inu’s rise also coincides with easing geopolitical tensions, particularly in the Middle East. Israel’s relatively mild retaliation against Iran, leaving Iran’s oil assets largely untouched, surprised many analysts and helped alleviate some of the fears surrounding the region. This reduction in geopolitical risk has helped boost broader markets, including stocks and bonds.
• Increased Demand for Meme Coins: Finally, rising demand for meme coins is a key factor in Shiba Inu’s price growth. Data shows that the combined market capitalization of all meme coins has reached $68 billion, positioning them as some of the best-performing assets in the cryptocurrency sector.

Shiba Inu price formed a golden cross

Notably, Shiba Inu has formed a golden cross chart pattern, where the 200-day and 50-day Exponential Moving Averages (EMAs) have crossed. The last time SHIB formed a golden cross was in December, which triggered a strong bullish breakout, propelling its price from $0.000010 to $0.000045.

For further upside, Shiba Inu will need to break above the significant resistance level at $0.000021, which represents its highest point on September 27. A move above this level could signal continued gains, potentially pushing the price toward $0.0000294, the highest level seen on May 29.