Dogecoin’s rise to the forefront as the leading meme cryptocurrency was driven by its remarkable surge during the 2021 bull market. Now, there is speculation that Shiba Inu could potentially follow a similar trajectory. A comparison between the current cycle of Shiba Inu and Dogecoin’s historical price movements suggests that Shiba Inu might be gearing up for a significant breakout.
Shiba Inu recently surpassed its 50-week moving average after a period of consolidation, hinting at a potential upward trend. Analysts have identified key patterns in Shiba Inu’s price action, such as flirting with a critical resistance point and finding support from its long-term moving averages, that mirror Dogecoin’s past performance.
Drawing parallels between the two meme coins, analysts have noted similarities in their price movements and formations. Notably, Shiba Inu appears to be following a pattern akin to Dogecoin’s previous rally, including entering a downward channel and forming a golden cross. With favorable market sentiments, Shiba Inu could be on track for a significant price surge in the near future.
While Dogecoin’s rally was notably influenced by celebrity endorsements, particularly from Elon Musk, Shiba Inu’s growth may rely more heavily on technical indicators and overall market conditions. Technical analysis and market sentiment suggest a bullish outlook for Shiba Inu, with potential for a parabolic rally in the coming months.
Furthermore, experts point to Fibonacci retracement levels and ongoing bullish sentiments as supporting factors for Shiba Inu’s potential growth. Analysts predict significant price gains for Shiba Inu in the near future, with expectations of new record highs by the fourth quarter of 2024.
In addition to technical analysis, developments within the Shiba Inu community, such as the potential introduction of a stablecoin on the network, are also contributing to positive market sentiment. News of a stablecoin in the Shibarium ecosystem has led to increased capital inflow and heightened liquidity for Shiba Inu, potentially laying the groundwork for a price rally.
As of the latest data, Shiba Inu has shown substantial gains in both short-term and long-term trading, trading above key moving averages. However, caution is advised as the relative strength index signals an overbought condition, suggesting the possibility of a near-term price correction.