In the world of cryptocurrencies, Dogecoin’s journey to becoming the leading meme token was influenced by its remarkable surge in the 2021 bullish market. Now, there are indications that Shiba Inu could potentially follow a similar path.
Evaluating SHIB’s current trend alongside DOGE’s historical performance hints at a possible significant breakthrough for Shiba Inu. Recent observations by crypto trading expert Trading Shot on TradingView noted that Shiba Inu breached its 50-week moving average after a period of consolidation, suggesting a promising outlook.
Shiba Inu is currently testing the upper limit of a descending channel spanning seven months, a pivotal barrier, while drawing support from its enduring 200-week moving average.
Moreover, the specialist identified the descending channel as a ‘bull flag,’ a pattern recognized for foreshadowing vigorous upswings. Similar to Dogecoin’s trajectory from 2018 to 2021, this technical formation could position SHIB for a substantial surge in value.
Comparing the movements of the two meme tokens, an examination of DOGE’s journey during 2018-2021 revealed resemblances to SHIB’s current scenario. After hitting its peak in October 2021, Shiba Inu entered a downward channel akin to Dogecoin’s experience. Notably, SHIB has also recently experienced a one-week golden cross, hinting at the potential for a robust rally if market conditions align favorably.
While DOGE’s surge was also partly driven by endorsements from notable figures like Tesla’s CEO Elon Musk, SHIB’s future trajectory may rely more heavily on technical metrics and broader market sentiment.
Furthermore, Fibonacci retracement analysis supports a positive outlook for SHIB, as it remains undervalued based on its current position relative to the 0.5 Fibonacci retracement level. If the current positive market sentiment persists, SHIB could reach the 1.5 Fibonacci extension level at $0.00035, as suggested by analysts.
Crypto analyst Alan Santana anticipates that SHIB is poised for notable gains in the upcoming months, foreseeing potential growth percentages of 101%, 205%, 654%, and a remarkable 1,111%. Investors are advised to anticipate a new all-time high for SHiba Inu by the fourth quarter of 2024.
Aside from technical analysis, developments within the Shiba Inu community, such as the potential introduction of a stablecoin on the network, could also contribute to a price rally. Reports indicate that news of a forthcoming stablecoin for the Shibarium ecosystem garnered substantial capital inflows for SHIB, accentuating the token’s liquidity and fostering the conditions for a possible price surge.
Currently, Shiba Inu is trading at $0.00002125, reflecting impressive gains in the past 24 hours. The coin is exhibiting bullish momentum in both the short and long-term, trading above its 50-day and 200-day simple moving averages. However, caution is advised, as the 14-day relative strength index (RSI) signals an overbought condition, implying a potential pause in price movement.