DOGE price

Shiba Inu price rebounds 100% after record lows against Dogecoin — more upside ahead?

SHIB price technicals hint at another possible 40% rally for Shiba Inu versus Dogecoin as Shibarium comes into focus.

The Shiba Inu (SHIB) price was at the lowest versus its top rival, Dogecoin (DOGE), in November 2022. Three months later, the dynamics have flipped.

SHIB price rises 100% versus DOGE

On Feb. 4, 2023, the SHIB/DOGE pair reached 0.00001638 DOGE, up almost 100% three months after bottoming out at 0.00000993 DOGE, its lowest level on record.

*SHIB/DOGE daily price chart. Source: TradingView*

The sharp recovery came as investors’ focus shifted to the impending launch of Shibarium, a Shiba Inu-backed layer-2 blockchain built on the Ethereum mainnet, announced on Jan. 16.

As Cointelegraph reported, the SHIB price rebound gained momentum amid reports that Shibarium will go live on Feb. 14.

In comparison, Dogecoin’s fundamentals looked pale, with Elon Musk suspending a DOGE tipping bot for violating Twitter’s rules.

Hey @elonmusk

Our Tipping bot @MyDogeTip got suspended for no reason. It was a good bot used to spread Dogecoin across the community. pic.twitter.com/4PTa1siOA7

— DogeDesigner (@cb_doge) February 1, 2023

Nonetheless, both memecoins have had a great start to 2023. SHIB/USD is up almost 85%, while DOGE/USD is up 36% year-to-date.

What’s next for SHIB/DOGE?

According to several technical indicators, the SHIB/DOGE recovery trend is set to continue in the coming weeks.

Based on historical cycles, the pair could climb to 0.00002181 by March 2023, which would be a 40% gain from current price levels, as shown in the chart below.

DOGE, SHIB price downside in February?

But while SHIB appears to be in a better position to outperform DOGE, both memecoins face headwinds against the dollar in February.

For instance, Dogecoin risks a small correction versus the dollar in the coming days as it paints a potential rising wedge pattern.

Rising wedges are bearish reversal patterns showing the price rising inside two converging, ascending trendlines. They resolve after the price breaks below the lower trendline and falls by as much as the wedge’s maximum height.

Applying the scenario on the daily DOGE price chart brings its downside target to $0.0850, down 10% from current price levels

*DOGE/USD daily price chart featuring rising wedge setup. Source: TradingView*

Meanwhile, SHIB/USD also looks overstretched on its daily chart, based on its relative strength index of 81 — higher than 70 is considered “overbought.“

In addition, it’s now facing a strong resistance zone at around $0.00001517, where a pullback is likely. If this is the case, February could see the SHIB price drop to $0.00001300–$0.000013000 — its most voluminous area in recent months, down 13%–20% from current price levels.

*SHIB/USD daily price chart. Source: TradingView*

Conversely, a break above the $ 0.00001517 resistance would position SHIB for a run to $0.00001651, the upside target of its prevailing bull pennant setup.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

BNB jumps to new BTC all-time high as Elon Musk’s Twitter fuels DOGE bulls

Excitement is taking over for BNB and Dogecoin as market participants see strength continuing.

BNB (formerly known as Binance Coin) has hit new all-time highs against Bitcoin (BTC) as excitement grows over the cryptocurrency’s future role on Twitter.

*BNB/BTC 1-month candle chart (Binance). Source: TradingView*

BNB sets new record against BTC

Data from Cointelegraph Markets Pro and TradingView confirms that BNB/BTC briefly spiked above 0.15 BTC to a record 0.15267 BTC on Oct. 30.

BNB, the in-house token of Binance, the largest crypto exchange by volume, has gained around 10% in the past 72 hours.

The strong performance came on the back of reports that Binance was preparing to assist Twitter in eradicating bots as part of its new direction under Elon Musk.

Binance had contributed $500 million to Musk’s takeover of the social media platform.

“Our intern says we wired the $500 million 2 days ago, probably just as I was being asked about Elon/Twitter,” Binance CEO Changpeng “CZ” Zhao wrote in a cryptic tweet referencing comments he made to crypto media outlet Decrypt.

Further posts from CZ stated, “Let’s unleash the bird,” and “Crypto Twitter,” the former appearing to be referencing Musk’s own tweet, “the bird is freed.”

In U.S. dollar terms, meanwhile, BNB hit highs of $318.80 on the day, its best performance since mid-August.

*BNB/USD 1-day candle chart (Binance). Source: TradingView*

Dogecoin “copies itself” as it runs to April highs

Musk was also responsible for outperformance of another popular cryptocurrency in recent days — Dogecoin (DOGE).

In a familiar setup, actions by Musk linked to Twitter sent DOGE price action into a frenzy, with DOGE/USD hitting its highest levels since April.

Long a pet favorite of Musk, DOGE is still waiting for its shot at a wider use application, possibly with his involvement.

In the meantime, popular pseudonymous analyst Tree of Alpha suggests retail traders may do the work, helped by both the Twitter and Binance ecosystems.

“Another ATH in complete silence as the dog coin longers rejoice,” they wrote about BNB, adding:

“Imagine the smell when launchpads become a thing again and retail is back to turbo buying garbage on BSC. Are you actually fading the token that backs the biggest exchange & the most degenerate evm chain by far?”

*DOGE/USD 1-week candle chart (Binance). Source: TradingView*

Analytics account Stockmoney Lizards meanwhile noted uncanny similarities in DOGE price action and the relative strength index (RSI) still being repeated this year.

“Dogecoin copies itself,” it summarized.

*DOGE/USD annotated chart. Source: Stockmoney Lizards/ Twitter*

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Binance Coin jumps to new BTC all-time high as Elon Musk’s Twitter fuels DOGE bulls

Excitement is taking over for Binance Coin and Dogecoin as market participants see strength continuing.

Binance Coin (BNB) has hit new all-time highs against Bitcoin (BTC) as excitement grows over the crypto’s future role on Twitter.

Binance Coin sets new record against BTC

Data from Cointelegraph Markets Pro and TradingView confirms that BNB/BTC briefly spiked above 0.15 BTC to a record 0.15267 BTC on Oct. 30.

The in-house token of Binance, the largest crypto exchange by volume, has gained around 10% in the past 72 hours.

The strong performance came on the back of reports that Binance was preparing to assist Twitter eradicate bots as part of its new direction under Elon Musk.

Binance had contributed $500 million to Musk’s takeover of the social media platform.

“Our intern says we wired the $500 million 2 days ago, probably just as I was being asked about Elon/Twitter,” CEO Changpeng Zhao wrote in a cryptic tweet referencing comments to crypto media outlet Decrypt.

Further posts stated, “Let’s unleash the bird” and “crypto Twitter,” the former appearing to be referencing Musk’s own tweet, “The bird is freed.”

In U.S. dollar terms, meanwhile, BNB hit highs of $318.80 on the day, its best performance since mid-August.

Dogecoin “copies itself” as it runs to April highs

Musk was also responsible for outperformance of another popular cryptocurrency in recent days — Dogecoin (DOGE).

A familiar setup, actions by Musk linked to Twitter sent DOGE price action into a frenzy, with DOGE/USD hitting its highest levels since April.

Long a pet favorite of Musk, DOGE is still waiting for its shot at a wider use application, possibly with his involvement.

In the meantime, popular analyst Tree of Alpha suggests, retail traders may do the work, helped by both the Twitter and Binance ecosystems.

“Another ATH in complete silence as the dog coin longers rejoice,” he wrote about BNB.

“Imagine the smell when launchpads become a thing again and retail is back to turbo buying garbage on BSC. Are you actually fading the token that backs the biggest exchange & the most degenerate evm chain by far?”

Analytics account Stockmoney Lizards meanwhile noted uncanny similarities in DOGE price action and relative strength index (RSI) still being repeated this year.

“Dogecoin copies itself,” it summarized.

BTC price struggles at $21K as trader says ‘top is in’ for Bitcoin, Ethereum

The previous days’ trips above the $21,000 mark could be Bitcoin’s last for the time being, fresh analysis concludes.

Bitcoin (BTC) continued consolidating into the Oct. 30 weekly close as concerns over a deeper retracement became vocal.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

Trader avoids new longs below $21,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling levels just below $21,000 on the day.

Weekend trading had produced an early return above the $21,000 mark, this being short-lived as Bitcoin bulls failed to offer the volume to sustain higher levels.

Now, popular pseudonymous trader and analyst il Capo of Crypto sensed a change of direction was ultimately due for Bitcoin and altcoins alike.

Altcoins themselves had also performed strongly through the weekend, notably led by Dogecoin (DOGE), which was up another 25% in the past 24 hours at the time of writing and at six-month highs.

“In my opinion, top is in for $BTC and $ETH, but some altcoins could pump more,” il Capo of Crypto wrote in part of a fresh Twitter update, adding:

“Not entering any new long positions and just trailing my stops in profits (altcoins). I will fully TP soon.”

Profit-taking was already a hot topic in recent days, with on-chain indicators suggesting that the temptation would become considerable should Bitcoin pass $21,000 more convincingly.

Responding to Il Capo of Crypto, fellow trader Mark Cullen voiced similar caution over the short-term market strength.

Bitcoin, he tweeted, had “spent a bit too long under 21k for my liking, while Alts / #ETH in particular have run. BUT, break the golden zone and i would consider a quick push higher first. Lose 20.4k and i start to question everything.”

*BTC/USD annotated chart. Source: Mark Cullen/ Twitter*

“Uptober” on track for sideways 7% gains

On the daily chart, BTC/USD was up against the 100-day moving average (MA), having managed to beat out the 50-day MA over the week.

*BTC/USD 1-day candle chart (Bitstamp) with 50, 100MA. Source: TradingView*

Turning to the weekly and monthly charts, Oct. 30 looked to offer Bitcoin’s highest weekly candle close since mid-September.

*BTC/USD 1-week candle chart (Bitstamp). Source: TradingView*

At current prices, Bitcoin was meanwhile up 7% in October, still its third-weakest performance since 2013, according to data tracked by monitoring resource Coinglass.

*BTC/USD monthly returns chart (screenshot). Source: Coinglass*

Dogecoin price rallies 150% in 4 days, but DOGE now most ‘overbought’ since April 2021

DOGE price could drop 60% by the end of this year as it reaches its most overbought level since April 2021.

The Dogecoin (DOGE) price rally extended further on Oct. 29 in hopes that the cryptocurrency would get a major boost from Elon Musk’s Twitter acquisition.

Elon Musk boosts Dogecoin price again

Dogecoin price jumped by nearly 75% to reach $0.146 on Oct. 29, its biggest daily gain since April 2021.

*DOGE/USD daily price chart. Source: TradingView*

Notably, the memecoin’s massive intraday rally came as a part of a broader uptrend that started earlier this week on Oct. 25. In total, DOGE’s price gained 150% during the Oct. 25-29 price rally.

The surge was also accompanied by a decent increase in its daily trading volumes. This coincided with a spike in the number of DOGE transactions exceeding $100,000, according to Santiment. Both indicators suggest a growing demand for Dogecoin tokens among whales.

*Dogecoin whale transaction count. Source: Santiment*

The jump across Dogecoin’s key metrics reflect investors’ excitement about Elon Musk’s Twitter acquisition on Oct. 27. Earlier this year, the billionaire entrepreneur had flirted with the idea of making Dogecoin a payment method to purchase the Twitter Blue subscription.

Musk’s Tesla and SpaceX organizations already accept DOGE payments for their merchandise.

$DOGE, the official currency of Twitter.

— David Gokhshtein (@davidgokhshtein) October 28, 2022

Shiba Inu, memecoins follow DOGE

Shiba Inu (SHIB), the second-largest meme token by market capitalization, posted a copycat rally as well.

On Oct. 29 alone, SHIB’s price jumped by 30% to $0.00001519, its highest level since August 2022. Like Dogecoin, Shiba Inu’s rally came as a part of a broader uptrend that started on Oct. 25. Since then, its price has gained 53%.

Additionally, other memecoins have jumped massively in said period, including Dogelon Mars (ELON), which rallied 140%.

*Meme coins performance on hourly, daily, and weekly timeframes. Source: CoinMarketCap*

Dogecoin most overbought since April 2021

Dogecoin’s ongoing price rally is starting to look overstretched, however, according to a classic technical indicator.

The relative strength index (RSI), a momentum indicator determining the degree of recent price changes to analyze overbought or oversold levels, has risen to 93.69 on the daily Dogecoin chart. This is the highest level since April 2021, a month before the DOGE price rallied to its record high of $0.75.

Therefore, the “overbought” conditions do not necessarily mean an immediate bearish reversal. But they do reflect the current euphoric buying momentum in the market, which sooner or later prompts the price to trend either sideways or correct downward.

Dogecoin’s 2018-2020 bear market on a weekly chart sheds light on similar price action. Notably, DOGE crashed by almost 95% almost two years after peaking at $0.0194 in January 2018.

The token’s correction period saw it trending inside a descending channel. It broke out of the range to the upside in July 2020 but followed the upside move with a sideways consolidation trend — between its 0 Fib line of 0.0022 and 0.236 Fib line of $0.0054 — until December 2020.

*DOGE/USD weekly price chart. Source: TradingView*

In comparison, Dogecoin’s ongoing bear market is shorter but shows a similar trend trajectory to the 2018-2020 period, as shown above. Therefore, DOGE may fluctuate inside its current 0-0.236 Fib line range (or the $0.055-$0.176 range) following its descending channel breakout.

In other words, DOGE could correct toward $0.055 by the end of this year, down about 60% from current price levels, if the fractal plays out as intended.

Conversely, an immediate breakout above the 0.236 Fib line could have DOGE eye $0.25 as its next upside target.

Dogecoin price jumps 40% on Elon Musk, Twitter’s crypto wallet rumors

DOGE could undergo a 20% price correction before the end of the year despite strong fundamentals.

Dogecoin’s (DOGE) price rallied to its best levels in two months as traders assessed Twitter’s potential to create a cryptocurrency wallet product.

Elon Musk fuels Dogecoin rally again

DOGE’s price jumped to $0.081 on Oct. 27. The price gained roughly 40% two days after Jane Manchun Wong, a popular tech blogger, claimed that Twitter is working on a wallet prototype that supports cryptocurrency deposits and withdrawals.

Elon Musk is the thread that connects Dogecoin and Twitter. Earlier this year, the Tesla and SpaceX CEO won the bid to purchase Twitter for $44 billion. Later, on April 11, he flirted with the idea of adding Dogecoin as a payment method for the Twitter Blue subscription service.

DOGE’s price grew 30% to $0.17 in 10 days after Musk’s pro-crypto suggestion to the Twitter board. But the memetoken fell drastically afterward, reaching as low as $0.05 in June as Musk attempted to back away from the deal, citing his concerns over Twitter’s user figures.

Twitter sued Musk in response, eventually prompting the court to rule in its favor. Chancellor Kathaleen McCormick, the judge overseeing the legal battle, denied attempts by Musk to postpone the trial, noting that the deal should close by 5 pm ET on Oct. 28.

Musk changed his Twitter bio to “Chief of Twit” on Oct. 26, followed by a personal visit to the Twitter headquarters on the same day. That raised anticipations that Musk would close the deal per the court deadline, paving the way for Dogecoin to become an integral part of the Twitter platform.

#Dogecoin pumped 15% after this: pic.twitter.com/MCZ9iGyt1a

— Altcoin Daily (@AltcoinDailyio) October 27, 2022

DOGE price risks 20% correction

From a technical standpoint, Dogecoin’s recovery shows signs of exhaustion as its price tests a strong resistance confluence.

On the three-day chart, the confluence comprises three resistance levels: a multi-month descending trendline, the 50-3D exponential moving average (the red wave), and a horizontal level around $0.08, as shown below.

*DOGE/USD three-day price chart. Source: TradingView*

Given DOGE’s immediate correction after testing these resistance levels, the token’s possibility of heading lower appears high. Meanwhile, its downside target is near the ascending trendline that has served as support in recent months.

That puts DOGE’s price en route to around $0.06 in Q4/2022, approximately 20% below the current price.

Conversely, a decisive breakout above the resistance confluence could have DOGE eye the 200-3D EMA (the blue wave) near $0.11 as its next upside target. In other words, a 50% boom from current price levels.

Dogecoin has crashed 75% against Bitcoin since Elon Musk’s SNL appearance

DOGE price has more room to decline despite Elon Musk’s visible efforts to revive its upside boom.

Dogecoin (DOGE) may be back in the top-ten cryptocurrency by market capitalization, but its loses in both USD and Bitcoin (BTC) terms since Elon Musk’s SNL appearance are considerable.

Dogecoin loses Musk-effect

The DOGE/BTC trading pair has fallen 75% after peaking out at 1,287 satoshis on May 9, 2021, a day after Musk was a guest host on Saturday Night Live, including a sketch titled “The Dogefather.”

*DOGE/BTC daily price chart. Source: TradingView*

Before his appearance, the billionaire entrepreneur was relentlessly tweeting Dogecoin memes, images, which helped DOGE — a cryptocurrency that started out as a joke — to attain a market capitalization north of $90 billion in May 2021.

That’s more than 36,000% gains in just two years. But things have gone downhill ever since.

Investors reflected hopes that even an optimistic wink from Musk on SNL toward DOGE would prompt his 106 million followers to buy the meme-token. But Musk did an unforeseeable thing: he called Dogecoin a “hustle.”

One day later, DOGE’s price began its decline from its all-time high. It continues its downtrend to this day, changing hands for about 300 satoshis versus its peak value of 1,287 satoshis.

Simultaneously, the price of Dogecoin has crashed by more than 90% against the U.S. dollar after peaking out at $0.76 in May 2021.

Elon Musk’s efforts to keep Dogecoin relevant

Musk has made multiple efforts to revive people’s interest in Dogecoin ever since.

In May 2021, he revealed he had been working with Dogecoin developers to improve its blockchain’s transaction efficiency since 2019. Additionally, Musk’s Tesla and SpaceX also started accepting DOGE payments for their merchandise, prompting a sharp but short-lived price rally.

Moreover, Musk stated during a market crash in March 2022 that he would not sell his crypto holdings, including DOGE and Bitcoin. Nonetheless, Tesla sold 75% of its Bitcoin holdings three months after Musk’s declaration.

As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.

I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.

— Elon Musk (@elonmusk) March 14, 2022

The prospect of adding a DOGE payment option to Twitter also collapsed after Musk backed away from buying the social media giant.

In September 2022, Tesla launched Cyberwhistle, a limited-edition collectible inspired by its Cybertruck vehicle, which users can purchase only via Dogecoin.

Will Dogecoin rebound, then?

Traders have started ignoring Musk’s celebrated association with Dogecoin, given their half-hearted reactions to his DOGE-related updates lately.

Instead, it appears that traders have been more focused on macro catalysts lately, primarily the Federal Reserve’s back-to-back interest rate hikes that have put downward pressure on cryptocurrencies, stocks, and similar risk-on assets in 2022 and beyond.

The technical setups also suggest the same. For instance, on the weekly chart, DOGE/BTC now tests 307 satoshis as its interim support, given the level’s history as a strong price floor since November 2021.

*DOGE/BTC weekly price chart. Source: TradingView*

A decisive break below 307 satoshis would have DOGE/BTC test its 200-week exponential moving average (200-week EMA; the blue wave) near 244 satoshis as its downside target in 2022 — a 20% decline.

A 40% decline against the dollar

DOGE price has been trending inside a broad descending channel against the U.S. dolla since it topped in May 2021, now eyeing its lower trendline as the next downside target.

The target appears to be in the range defined by $0.048 and $0.036, given these levels’ history as support. Therefore, DOGE could drop by roughly 40% against the dollar in Q4 2022.

Dogecoin has crashed 75% against Bitcoin since Elon Musk’s SNL appearance

DOGE price has more room to decline despite Elon Musk’s visible efforts to revive its upside boom.

Dogecoin (DOGE) may be back in the top-ten cryptocurrency by market capitalization, but its loses in both United States dollar and Bitcoin (BTC) terms since Elon Musk’s Saturday Night Live (SNL) appearance are considerable.

Dogecoin loses Musk-effect

The DOGE/BTC trading pair has fallen 75% after peaking out at 1,287 satoshis on May 9, 2021, a day after Musk was a guest host on SNL, including a sketch titled The Dogefather.

Before his appearance, the billionaire entrepreneur was relentlessly tweeting Dogecoin memes and images, which helped DOGE — a cryptocurrency that started out as a joke — to attain a market capitalization north of $90 billion in May 2021.

That’s more than 36,000% gains in just two years. But, things have gone downhill ever since.

Investors reflected hopes that even an optimistic wink from Musk on SNL toward DOGE would prompt his 106 million followers to buy the memecoin. But, Musk did an unforeseeable thing: he called Dogecoin a “hustle.”

One day later, DOGE’s price began its decline from its all-time high. It continues its downtrend to this day, changing hands for about 300 satoshis versus its peak value of 1,287 satoshis.

Simultaneously, the price of Dogecoin has crashed by more than 90% against the U.S. dollar after peaking at $0.76 in May 2021.

Elon Musk’s efforts to keep Dogecoin relevant

Musk has made multiple efforts to revive people’s interest in Dogecoin ever since.

As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.

I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.

— Elon Musk (@elonmusk) March 14, 2022

The prospect of adding a DOGE payment option to Twitter also collapsed after Musk backed away from buying the social media giant.

In September 2022, Tesla launched Cyberwhistle, a limited-edition collectible inspired by its Cybertruck vehicle, which users can purchase only via DOGE.

Will Dogecoin rebound, then?

Traders have started ignoring Musk’s celebrated association with Dogecoin, given their half-hearted reactions to his DOGE-related updates lately.

A decisive break below 307 satoshis would have DOGE/BTC test its 200-week exponential moving average (200-week EMA; the blue wave) near 244 satoshis as its downside target in 2022 — a 20% decline.

A 40% decline against the dollar

DOGE price has been trending inside a broad descending channel against the U.S. dollar since it topped in May 2021, now eyeing its lower trendline as the next downside target.

The target appears to be in the range defined by $0.048 and $0.036, given these levels’ history as support. Therefore, DOGE could drop by roughly 40% against the dollar in Q4 2022.

Dogecoin misses bullish target after Elon Musk snubs Twitter — What’s next for DOGE price?

The Tesla and SpaceX CEO had flirted with the idea of adding DOGE payments to Twitter.

Dogecoin (DOGE) has missed a much-anticipated technical upside target and is down nearly 10% over the past week amid an ongoing spat between Elon Musk and Twitter.

Musk hurts DOGE price

To recap, Musk, whose companies Tesla, SpaceX and Vegas Loop accept DOGE payments, had suggested introducing the same checkout option on Twitter this April.

Bitcoin spoofs a breakout while Dogecoin jumps on Elon Musk’s Twitter takeover news. https://t.co/dlMH5u5jaf

— Cointelegraph (@Cointelegraph) April 25, 2022

Nonetheless, the Musk-Twitter deal hturned sour after the billionaire attempted to walk away from his $44 billion takeover bid. In response, the platform has sued Musk, alleging that his heart changed after suffering personal losses in the ongoing global market carnage.

Some Dogecoin traders had eyed Musk’s Twitter takeover to stay bullish on DOGE/USD, considering the deal would boost the token’s adoption across the platform’s 330 million monthly active users.

#Dogecoin | The number of large transactions on the $DOGE network with a value greater than $100,000 just reached a four-month high at 2,400 transactions.

Such market behavior can act as a proxy for whales’ activity, suggesting how they may be positioning for a big price move. pic.twitter.com/K49QfXFVYb

— Ali Martinez (@ali_charts) April 26, 2022

Dogecoin misses IH&S target

Dogecoin dropped by 19.5% after Musk called off the Twitter deal on July 8. In doing so, DOGE also invalidated its prevailing “inverse head and shoulders (IH&S)” pattern that could have pushed its price per token toward $0.112, as shown below.

*DOGE/USD daily price chart featuring IH&S pattern. Source: TradingView*

Bias conflict ahead

Dogecoin now holds above a multi-month “mid-channel support” near $0.06 while remaining indecisive for now, as shown in the chart below.

DOGE’s price eyes $0.09 as the next target if it rallies decisively from the mid-channel support. The upside target coincides with the descending trendline (distribution level) that has been serving as resistance since May 2021.

Conversely, a break below the mid-channel support could have DOGE’s price test $0.04 as its downside target, down 32% from July 13’s price. This level coincides with another descending trendline (accumulation level) that has acted as support for Dogecoin’s price since April 2021.

DOGE days of summer: Shiba Inu gains 40% on Dogecoin two months after record lows

SHIB price remains at risk of falling further against DOGE due to weak technicals.

Shiba Inu (SHIB) has grown stronger against its top “memecoin” rival Dogecoin (DOGE) in the last two months, in part due to the token’s periodic token burning events and a flurry of project announcements that promises to boost its utility.

Why is the SHIB price rallying?

In detail, SHIB/DOGE gained a little over 40% after bouncing from 0.0001120 on May 12, its lowest level on record.

*SHIB/USD four-hour price chart. Source: TradingView*

Coin burn is the most logical explanation behind SHIB’s recent rally against DOGE.

The process involves sending SHIB tokens to a wallet without a master, i.e., removing them out of circulation permanently against the total one quadrillion supply (half of which were sent to Ethereum’s co-founder Vitalik Buterin.

The Shiba Inu network has burned more than 410 trillion SHIB tokens (~$4.5 billion at July 8’s price) from its initial supply, according to data tracking portal ShibBurn.com.

*Shiba Inu supply. Source: ShibBurn.com*

Dogecoin does not boast a coin burn feature and comes with an uncapped supply. That could give traders a reason to accumulate SHIB over DOGE, primarily during a crypto bear market when almost all digital assets fall against the U.S. dollar.

JUST IN: $SHIB @Shibtoken is back on top 10 purchased tokens among 1000 biggest #ETH whales in the last 24hrs

Peep the top 100 whales here: https://t.co/jFn1zIOq03

(and hodl $BBW to see data for the top 1000!)#SHIB #whalestats #babywhale #BBW pic.twitter.com/2o5A0yhHy4

— WhaleStats – BabyWhale ($BBW) (@WhaleStats) July 5, 2022

As a result, SHIB’s losses against the U.S. dollar since May 12 stand around -7.5% versus DOGE’s 17.5% losses in the same period.

*SHIB/USD versus DOGE/USD daily price chart. Source: TradingView*

The Shiba Inu ecosystem grows

Shiba Inu’s launch came with a promise that it would be a better version of Dogecoin.

The project attempted so by offering some potential applications, such as smart contracts and an exclusive decentralized exchange called ShibaSwap that enables users to stake SHIB for “BONE” and “LEASH,” two other tokens within the Shiba Inu ecosystem.

*ShibaSwap trading volume. Source: Nomics.com*

On July 6, Shiba Inu’s pseudonymous developer Shytoshi Kusama (not to be confused with the blockchain project Kusama), teased followers with the launch of an “algorithmic stablecoin” called SHI, coupled with a reward token “TREAT” and a collectible card game for its metaverse.

On the other hand, Dogecoin has Elon Musk, the CEO of Tesla and SpaceX, who has already enabled DOGE payments at the companies’ online merchandise stores and is playing with the idea of doing the same on Twitter.

Earlier this week, Musk’s Boring Company also enabled Dogecoin payments for its Las Vegas transit system “Loop.”

What’s next for SHIB/DOGE

SHIB’s ongoing rally against DOGE risks exhaustion due to a classic bearish reversal pattern.

Notably, SHIB/DOGE has been fluctuating inside a rising wedge , defined by two ascending, converging trendlines. Rising wedges typically resolve after the price breaks below their lower trendlines, accompanied by a rise in trading volume.

In theory, the breakdown move could pull the price to the level where the length is equal to the maximum distance between the wedge’s upper and lower trendlines. The chart below shows SHIB/DOGE in a similar setup.

*SHIB/DOGE daily price chart featuring ‘rising wedge’ breakdown setup. Source: TradingView*

As a result, the pair risks falling to the 0.0001233–0.0001348 range depending on its breakdown point, a 15%–20% drop from current price levels.