SHIB formed its first golden cross in September - Price targets a 142% increase

Even as the broader crypto market awaits direction after a dismal start in September, Shiba Inu (SHIB) has recorded an important technical signal: the formation of a golden cross on the hourly chart. The golden cross, considered a bullish signal, occurs when the short-term moving average (MA) crosses above the long-term MA. This is the first time in September that Shiba Inu has recorded this phenomenon, which is all the more notable as September is often seen as a weak time for cryptocurrencies.

SHIB Price Chart 1 Hour | Source: TradingViewSeptember remains a transitional period for SHIB, recording two out of four Septembers with price increases since 2021. Specifically, in 2021, Shiba Inu ended September with a 4.65% increase before exploding by 833.6% in October, reaching an all-time high of 0.000088 USD. In contrast, September 2022 saw SHIB decrease by 6.43%, but it still rose slightly by 10.4% in the following October. Meanwhile, the September and October of 2023 have been quite sluggish, with SHIB closing September down 8.25% and increasing by 6.04% in October.

Why is this important? A historical trend has been recorded: September often determines a large part of the price movement of SHIB in October – humorously referred to by the cryptocurrency community as “Uptober.” Although September may see slight decreases or increases, October typically ends in the green. An interesting exception occurred in September 2024, when SHIB increased by 26.6%, far surpassing the 2.46% increase in October, before exploding nearly 50% in November of the same year.

Source: CryptorankAs of now in September, Shiba Inu has slightly decreased by 0.41%, leaving investors eager to see if history will repeat itself or if SHIB will establish a new direction. At the time of writing, SHIB has dropped by 2.3% in 24 hours, down to 0.000012 USD, reversing the upward trend from a low of 0.000011 USD on September 1.

Data from the Bybit exchange shows that nearly 3 trillion SHIB tokens are held in user accounts, reflecting significant interest from both institutions and individuals. The large holdings on major exchanges also provide liquidity for potential price fluctuations.

According to technical indicators, accumulation cycles often occur before major price movements in the crypto market. The continuous changes in trading volume patterns, along with the price consolidation process, are clearly reflected in the current position of SHIB.

Triangle Pattern – Sign of Potential Volatility

Recent chart analysis shows that SHIB is forming a symmetrical triangle pattern, with a narrowing price range. This token has tested the resistance level of 0.000014 USD multiple times but has not produced any significant breakthroughs. Conversely, support levels around 0.000011 USD have helped establish a stable floor price during recent corrections, maintaining a balance between buying and selling pressure.

Such price compression is often a sign of accumulating market pressure. Historical trading shows that similar patterns often lead to strong price volatility in both directions. The current range of fluctuation remains narrow, indicating that selling pressure is low while buying pressure remains at a fundamental level, setting the stage for a potential breakout in the near future.

Traders closely monitor these technical signals, as the triangle pattern often relates to strong price movements. The current structure of SHIB indicates the potential for a bullish trend if the token breaks above the upper boundary of the triangle, or the risk of a bearish trend if it breaks below the lower boundary.

SHIB Price Chart | Source: TradingViewMarket positioning data also shows significant liquidity clusters around key price levels. These areas can amplify volatility when broken, leading to sudden price swings.

If the triangle pattern completes and buying pressure maintains above the resistance levels, the price target from this model could reach 0.00003 USD, equivalent to an increase of about 142% from the current price. This is a feasible scenario if buying pressure dominates and the market retains its current accumulation momentum.

Token burn – Creating supply incentives

According to data from Shibburn, the SHIB token burn rate has increased by over 201,000% in 24 hours, with more than 4.5 million tokens removed from circulation. This is one of the largest burn events in recent months.

The token burn mechanism helps reduce the total supply by permanently removing a certain amount of tokens from circulation. This process can significantly affect price volatility, creating an artificial scarcity, and market sentiment often reacts positively to supply reduction initiatives, especially within the meme coin ecosystem.

In summary, Shiba Inu is undergoing an exciting technical phase with a golden cross, a symmetrical triangle pattern, and a strong increase in token burning rate, opening up the possibility of significant price volatility in the coming weeks. September remains a crucial month to predict SHIB's “Uptober”, and all investors' eyes are on this meme coin, waiting for the next direction.

Emma