Shiba Inu Breaks Out of Two-Year Downtrend Ahead of Potential October Rally

Shiba Inu's recent performance has sparked hopes for an October rally. According to blockchain media outlet U.Today, Shiba Inu ended the third quarter with a significant gain of 39.3 percent, breaking its typical trend of weakness during this period.

This unexpected strength has led to increased expectations for the cryptocurrency in October. Historically, Shiba Inu has shown a strong performance in the month, with an average return of 167.5 percent and a median of 6.04 percent. However, it's essential to note that these figures are largely influenced by its massive surge in 2021.

Despite this, October remains a crucial period for Shiba Inu, as it has only ended the month lower once during the recorded period, with an 80 percent probability of finishing higher. The cryptocurrency has also shown rare price support since the 2021 surge period, thanks to three consecutive months of gains.

From a technical perspective, Shiba Inu is trading at $0.0000058569, with a market value of $3.45 billion and a 6.73 percent gain over the past seven days. It has broken out of a two-year falling-wedge pattern and formed a double bottom.

The weekly relative strength index (RSI) is also showing signs of a rebound, with an RSI of 52.28 and two confirmed bullish divergences. This indicates different moves in price and supply-demand indicators.