- SHIB hit $0.00001474 after bouncing from $0.00001004 in a clear cup formation breakout.
- SHIB market cap jumped by $2.5B, reaching $8.52B, while inflation dropped to just 0.0084.
- A confirmed breakout above $0.000013 signals price targets between $0.000028 and $0.000034.
Shiba Inu (SHIB) has broken out of a major resistance zone, rallying 46.8% from its June low of $0.00001004 to a July high of $0.00001474. Driven by a classic cup formation breakout, while analysts confirm a bullish market reversal as the token’s market cap reaches $8.52 billion.
Cup Formation Confirmed as Price Rallies Toward $0.00001700
The bullish cup pattern, which began forming in early May, has now been completed. SHIB reached the neckline at $0.00001421 before breaking through, confirming continuation above this resistance level. At press time, SHIB trades at $0.00001451, recording a 1.04% gain.
Support is clearly held at the 50% Fibonacci retracement level of $0.00001213. The upside pivot lies at $0.00001700, and the 9-day simple moving average at $0.00001349 is now acting as dynamic support.
The Moving Average Convergence Divergence (MACD 12,26) confirms strong bullish pressure. The MACD line stands at 0.00000055, the signal line at 0.00000026, with a histogram value of 0.00000029. The crossover in late June marked the start of the current rally.
An arrow marker on the chart near the neckline illustrates a breakout with volume confirmation. Buyers stepped in aggressively once SHIB cleared $0.00001400. Price now looks poised to move above $0.00001500 in the short term.
Market Cap Growth Aligned with Inflation Crash
On-chain data from Santiment reveals a synchronized move between SHIB’s price surge and macro supply metrics. The market cap expanded from $6.01 billion in early July to $8.52 billion by July 17. Price moved from $0.000011 on July 5 to $0.000014 within days.
During May, inflation remained volatile. On May 15, the annual inflation rate crossed 1.4 as SHIB hit $0.000017, followed by a sharp decline. Between May 18 and June 15, SHIB’s inflation frequently peaked above 1.2.
That volatility shifted in July, from around 0.039 to just 0.0084 on July 17. As inflation dropped, SHIB’s market cap soared by over $2.5 billion. This combination—rising valuation and minimal inflation—signaled demand outpacing supply.
Related: Shiba Inu at a Crossroads: Rally, Pause, or Reversal Ahead?
Analysts Confirm Trend Reversal as SHIB Clears Trendline
According to a July 17 chart posted by analyst World of Charts on X, SHIB has broken above a long-term descending trendline. The price is firmly above the major resistance zone between $0.00001250 and $0.00001300.
The red zone, once a ceiling, has now flipped into a stable support area. The breakout was validated by a retest, followed by a bullish rebound. The price structure since mid-June continues forming higher lows.
The World of Charts has a parabolic projected rise with targets ranging between 0.00002800 and 0.00003400. The market structure, macro indicators, and on-chain metrics point to a continuation. The current question is: Will SHIB continue its impetus in terms of accumulation to reach 0.00003400?
