Shiba Inu (SHIB) has jumped over 78.50% year-to-date, reaching $0.0000191 on November 8, underperforming most of its top memecoin competitors such as Dogecoin (DOGE) and Pepe (PEPE), which are up over 115. % for the same period, 668%.
DOGE/USD daily price chart. Source: TradingView
Currently, a mix of technical and fractal indicators are showing potential for a rebound towards 2024 highs.
What’s next, a 90% surge in SHIB prices?
The first major sign of a SHIB price rise comes from the continued formation of a cup and handle pattern.
The Cup and Handle is a bullish chart pattern, so named for its distinctive shape resembling a teacup, followed by a smaller, downward-pointing handle. It is usually resolved on a breakout by measuring the upside target by adding the maximum height of the pattern to the breakout point.
As of November 8, Shiba Inu was in the handle formation phase of the pattern, awaiting a breakout move above the general neckline resistance around $0.00002032.
SHIB/USDT daily price chart. Source: TradingView
The confirmed breakout could allow SHIB to reach and cover its target of around $0.00003545 in early 2025, an increase of around 90% from current price levels. The target falls within the March 2024 resistance area, including yearly highs around $0.00004567.
DOGE’s capital rotation increases SHIB
Shiba Inu has underperformed Dogecoin primarily because of his constant promotion of the Department of Government Efficiency, a government agency designed by Elon Musk to reduce excessive government spending. Interestingly, the Dogecoin ticker has the same initials as DOGE.
However, as of November 8, Dogecoin’s daily relative strength index (RSI) was above 70 and considered ‘overbought’, raising the prospect of a downside for the parent memecoin.
On the other hand, SHIB’s daily RSI is around 58.42 (neutral range), suggesting that there is room for the price to rise further.
DOGE/USDT daily price chart. Source: TradingView
This is even more evident in the widely traded SHIB/DOGE pair. The daily RSI for this pair indicates extreme “oversold” conditions. This is a sign that the selling pressure of SHIB compared to DOGE is being exhausted.
DOGE’s RSI suggests that the recent uptrend may be due to a cooling off period. Profit taking could trigger capital circulation from DOGE to SHIB, potentially fueling a SHIB rally.
SHIB/DOGE daily price chart. Source: TradingView
SHIB’s bullish outlook stems from its historic rallies, which have seen rallies of 30% to 150% due to similar technical setups.
The current situation, indicated by oversold RSI and key support areas highlighted in red in the chart above, suggests the possibility of another SHIB/DOGE recovery.
If this happens, the first upside target would likely be around the 50-day EMA (marked by the red wave), which is around 0.0001276 DOGE. This move represents an upside of over 30% from current price levels and further supports the 90% upside potential suggested in SHIB/USD analysis.
source: X
Shiba Inu looks at Trump’s second term
The Shiba Inu ecosystem has proposed establishing a Strategic Hub for Innovation and Blockchain (SHIB) in a U.S. city with the goal of transforming it into a global center for blockchain technology and sustainable development.
source: X
The Donald Trump administration is expected to favor economic growth initiatives, deregulation, and public-private partnerships in general, all of which could have a positive impact on blockchain development and technology hubs like SHIB.
relevant: Ethereum will distribute approximately $500 million to ecosystem projects in 2022-23: Report
The hub could lead to the development of new applications and use cases for SHIB, enhancing SHIB’s value proposition among speculators.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.