Shiba Inu, the popular meme coin and the second-largest of its kind, is setting up for a potential bullish breakout as it forms a promising pattern on the charts. Trading at $0.000018, SHIB has gained a remarkable 70% from its lowest level this year, and signs indicate more gains may be on the horizon.

For several weeks, SHIB has consolidated near its current level, a trend similar to that seen across other major cryptocurrencies. Bitcoin, for instance, has hovered just above $72,000, exhibiting the same kind of pause as it awaits a catalyst.

Shibarium Momentum Signals Potential Rally

One of the most exciting drivers for Shiba Inu’s outlook is the growth of its layer-2 network, Shibarium. Data from ShibariumScan reveals a notable increase in the number of accounts, jumping from 127,000 at the beginning of October to an impressive 177,000 this week. Most of these accounts were created on October 17, signaling renewed interest and activity in the network.

Transaction volumes on Shibarium have also climbed, with cumulative transactions rising to 438 million from 416 million earlier in the month. Shibarium's activity is essential, as its transactions are powered by the BONE token, much of which is converted into SHIB and subsequently burned, helping to reduce the token’s circulating supply.

Technical Analysis Points to a Bullish Breakout

The daily chart paints a promising picture for Shiba Inu. Recently, SHIB formed a double-bottom pattern at $0.00001253, breaking above the neckline at $0.000016. The chart also shows a bullish pennant pattern—characterized by a long upward movement followed by a symmetrical triangle—signaling that a breakout could be on the way as the pattern nears its confluence point.

Additionally, Shiba Inu has surpassed its 50-day moving average, a positive indicator that strengthens the likelihood of a breakout. Should this bullish scenario unfold, SHIB could test the resistance level at $0.00002150, last seen on September 27. A successful breach of this resistance could open the path to $0.000030, the token’s high from May 29, representing a potential 60% gain from its current price.

A Meme Coin Rally on the Horizon?

Shiba Inu’s rise may also benefit from Bitcoin’s potential to break above its all-time high of $73,800. As the crypto market’s leader, a strong move from Bitcoin often ignites a rally among altcoins, especially meme coins like Shiba Inu. With Shibarium’s growth and technical indicators aligning in SHIB’s favor, all eyes are on the token to see if it can capitalize on these bullish signals and stage a significant rally.

For now, Shiba Inu investors are watching closely, hoping that the recent increase in network activity and positive price patterns translate into substantial gains in the coming days.