Dogecoin’s rise to fame as the leading meme cryptocurrency was influenced by its remarkable surge during the 2021 bullish market. This success story has sparked speculation that Shiba Inu could potentially follow a similar path. A comparison of SHIB’s current trajectory with DOGE’s historical price movements indicates that SHIB might be on the verge of a significant breakthrough. Recently breaking above its 50-week moving average after a period of consolidation, Shiba Inu has shown signs of potential growth, as highlighted by crypto expert Trading Shot on TradingView.
By approaching the upper limit of a seven-month downward trend channel, while receiving support from its long-term 200-week moving average, SHIB stands at a crucial juncture. Notably, the downward channel has been identified as a ‘bull flag,’ a pattern known for foreshadowing strong surges. Drawing parallels with Dogecoin’s journey from 2018 to 2021, the technical indicators suggest that SHIB could be gearing up for a substantial price rally.
Unlike Dogecoin, whose momentum was influenced by endorsements from high-profile figures like Elon Musk, SHIB’s direction may be more reliant on technical factors and overall market sentiment. With the potential for a parabolic rise in the near future, SHIB is currently trading below its 0.5 Fibonacci retracement level, indicating undervaluation and setting the stage for possible growth leading to the 1.5 Fibonacci extension.
In addition to technical analyses, positive developments within the Shiba Inu community, such as the potential introduction of a stablecoin in the Shibarium ecosystem, are contributing to the optimistic outlook. The anticipation of a new record high for SHIB by the fourth quarter of 2024 further fuels expectations for significant gains. Despite showing signs of overbought conditions in the near term, SHIB’s bullish momentum is evident, with the token trading above its 50-day and 200-day moving averages.