The rise of Dogecoin’s (DOGE) popularity as the leading meme cryptocurrency was influenced by its remarkable surge in the 2021 bullish market. Now, there are indications that Shiba Inu (SHIB) might be following a similar path. Comparing SHIB’s current cycle with DOGE’s historical price patterns suggests that SHIB could be gearing up for a significant breakthrough. A key observation by crypto trading expert Trading Shot revealed that Shiba Inu recently surpassed its 50-week moving average after several months of consolidation, setting the stage for a potential rally.
Drawing parallels between the movements of DOGE and SHIB, a review of DOGE’s performance from 2018 to 2021 showcased striking resemblances to SHIB’s current trajectory. Both tokens experienced similar market behaviors, with SHIB following a downward channel after reaching its all-time high in October 2021, mirroring DOGE’s past actions. Notably, SHIB recently formed a one-week golden cross, a trend that could propel it towards a parabolic surge in the upcoming months.
While technical indicators and market sentiment play crucial roles, DOGE’s surge was also driven by celebrity endorsements, notably from Tesla CEO Elon Musk. However, Musk’s recent mentions of Dogecoin seem to have diminished impact due to the token’s correlation with overall market trends. In contrast, SHIB’s performance hinges on technical factors and general market sentiment.
Analysts foresee a positive outlook for SHIB based on Fibonacci retracement analysis, suggesting that the token remains undervalued and could potentially reach the 1.5 Fibonacci extension level. Moreover, crypto analyst Alan Santana predicts significant gains for SHIB, anticipating a new record high by the fourth quarter of 2024.
Fundamental factors within the Shiba Inu community, such as the potential introduction of a stablecoin on the Shibarium network, also support a price rally. News of the stablecoin led to significant capital inflow into SHIB, potentially driving a surge in its value.
Presently, Shiba Inu is trading at $0.00002125, having gained nearly 30% in the past 24 hours. The token shows bullish momentum in both short and long-term trends, trading above its 50-day and 200-day moving averages. However, caution is advised as the 14-day relative strength index indicates an overbought condition, suggesting a possible price pullback in the near term.