Shiba Inu price breaks out as a rare bullish pattern forms

Shiba Inu price rose for four consecutive days as Bitcoin and other altcoins soared ahead of the upcoming U.S. general election.

Shiba Inu (SHIB), the second-largest meme coin in the industry, climbed to $0.00001870, marking a 72% increase from its September lows. Its rally coincided with that of other popular meme coins. Dogecoin (DOGE) jumped by 14%, while Pepe (PEPE), Popcat (POPCAT), and Floki (FLOKI) rose by over 10%. Similarly, Bitcoin surpassed the significant resistance level at $71,000 as bulls targeted its all-time high.

There are three potential reasons why Shiba Inu and other coins are performing well. First, prediction markets like Polymarket, Kalshi, and PredictIt point to a strong likelihood of a Donald Trump win in next week’s election. Polymarket places his odds at 66%, while Kalshi and PredictIt have him at 60%.

Another Polymarket poll suggests that Republicans have a higher chance of winning the popular vote and the Presidency, a scenario not seen in decades.

A Trump win is viewed positively by market participants due to his pledge to appoint crypto-friendly regulators. Trump also has a personal investment in the crypto industry.

Second, Shiba Inu’s rise is attributed to easing geopolitical tensions, especially in the Middle East. Israel launched a relatively mild retaliation attack against Iran, catching many analysts by surprise as Iran’s prized oil assets were left untouched. Fading geopolitical fears have pushed other assets like stocks and bonds substantially higher.

Third, Shiba Inu’s price increase is driven by rising demand for meme coins. Data indicates that all meme coins have reached a combined market cap of $68 billion, making them some of the best-performing assets in the crypto industry.

Shiba Inu price formed a golden cross

SHIB chart by TradingView

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

Further upside will be confirmed if Shiba Inu rises above the significant resistance level at $0.000021, its highest point on Sep. 27. A move above that level could signal more gains, potentially reaching $0.0000294, its highest level on May 29.