Dogecoin’s rise to the top of meme cryptocurrencies was driven by its significant surge during the 2021 bull market, and now there are indications that Shiba Inu might follow a similar trajectory. A comparison of SHIB’s current trend with DOGE’s historical price movements suggests that SHIB could be gearing up for a major breakout. The potential for SHIB to mirror the success of the top meme coin stems from its recent breakthrough above the 50-week moving average after a prolonged consolidation period, as highlighted by crypto expert Trading Shot.
By edging near the upper limit of a seven-month downward channel, which acts as a crucial resistance level, SHIB is receiving support from its long-term 200-week moving average. The crypto specialist identified this downward channel as a ‘bull flag’ pattern, typically preceding strong rallies. Similar to Dogecoin’s performance between 2018 and 2021, this technical setup may pave the way for a substantial price surge for SHIB.
Analyzing the movements of both meme coins, DOGE and SHIB exhibit similar patterns, with SHIB demonstrating a potential replication of the trajectory seen in DOGE during the mentioned period. SHiba Inu has recently formed a downward channel after reaching its all-time high in October 2021, along with a one-week golden cross formation. Therefore, if market sentiments align favorably, SHIB could be on the verge of a remarkable rally in the upcoming months.
While DOGE’s surge in the past was amplified by celebrity endorsements, particularly from Tesla CEO Elon Musk, SHIB’s journey may rely more heavily on technical indicators and overall market sentiment. The Fibonacci retracement analysis supports a bullish outlook for SHIB, with potential for significant upward movement if current positive sentiments persist. Additionally, crypto analyst Alan Santana anticipates substantial growth for SHIB, projecting record highs by the fourth quarter of 2024.
Apart from technical factors, the Shiba Inu community’s support and news of a potential stablecoin launch are contributing to a positive price outlook for SHIB. The anticipated stablecoin for the Shibarium ecosystem has triggered notable interest, hinting at increased liquidity and the possibility of a price rally. Shiba Inu is currently experiencing upward momentum in both short and long-term trends, trading above key moving averages, although caution is advised due to the overbought signal from the 14-day relative strength index.