Shiba Inu has seen a notable rise over the past four consecutive days, fueled by a broader surge in Bitcoin and other altcoins as the U.S. general election approaches. The second-largest meme coin climbed to $0.00001870, marking a significant 72% increase from its lows in September. This rally aligns with other popular meme coins, including Dogecoin, which jumped by 14%, and Pepe, Popcat, and Floki, each rising over 10%. Bitcoin also surpassed the critical resistance level at $71,000, as bulls aim for its all-time high.
There are three primary factors contributing to the strong performance of Shiba Inu and other cryptocurrencies. First, prediction markets such as Polymarket, Kalshi, and PredictIt suggest a high likelihood of a Donald Trump victory in next week’s election, with Polymarket placing his odds at 66% and Kalshi and PredictIt at 60%. Additionally, another Polymarket poll indicates that Republicans have a better chance of winning both the popular vote and the presidency, a scenario not seen in decades. A Trump win is generally viewed favorably by market participants due to his commitment to appointing crypto-friendly regulators and his personal investments in the crypto space.
Second, Shiba Inu’s rise can be linked to easing geopolitical tensions, particularly in the Middle East. Israel’s recent mild retaliation against Iran has surprised many analysts, especially as key Iranian oil assets were left unscathed. This reduction in geopolitical fears has positively impacted other assets, including stocks and bonds.
Third, the demand for meme coins is on the rise, with data indicating that the combined market cap of all meme coins has reached $68 billion, making them some of the top-performing assets in the crypto sector.
Shiba Inu Forms a Golden Cross
In addition to these factors, 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, leading to a significant bullish breakout from $0.000010 to $0.000045.
Further gains for Shiba Inu will be confirmed if it can rise above the key resistance level at $0.000021, its highest point from September 27. A breakout above this level could signal additional upward movement, potentially reaching $0.0000294, the peak achieved on May 29.
