SHIB USD

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.

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.

SHIB/DOGE daily price chart. Source: TradingView

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.

Shiba Inu eyes 50% rally as SHIB price enters ‘cup-and-handle’ breakout mode

The Shiba Inu breakout appears almost ten days after SHIB’s addition to Binance Card.

Shiba Inu (SHIB) broke out of its prevailing “cup-and-handle” pattern on Aug. 14, raising its prospects of securing additional gains in the coming weeks.

Shiba Inu could soar 50%

A cup-and-handle appears when the price falls and rises in a U-shaped trajectory in the first stage, followed by a swift move sideways or downward in the second. Notably, the price trend develops under a common resistance level.

Typically, cup-and-handle patterns resolve after the price breaks above the resistance level; SHIB did the same on Aug. 14 after rising 27% to $0.000016, as shown below.

SHIB/USD daily price chart. Source: TradingView

Per the rule of technical analysis, a cup-and-handle breakout target is determined by measuring the distance between the pattern’s lowest point and resistance line and adding it to the breakout point. As a result, SHIB could head toward $0.00002253.

In other words, a 50% price rally by September.

A nonsense rally, nonetheless?

Fundamentally, Shiba Inu’s 27% intraday price rally on Aug. 14 had no visible catalysts except a metric showing that SHIB’s burn rate surged by 825% in a day. But the amount of burned SHIB is worth only over $4,500.

Shiba Inu burn rate. Source: Shibburn.com

On the whole, however, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens in its lifetime.

In addition, the Shiba Inu rally came almost ten days after Binance’s announcement to add SHIB support on its payment cards issued in Europe. In doing so, the crypto exchange raised SHIB’s potential to find new users in the emerging European cryptocurrency space.

Weak fundamentals could offset SHIB’s technically bullish bias, however, given tha cup-and-handle setups have only a 61% success rate in meeting their profit targets, according to veteran analyst Tom Bulkowski.

Related: 3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

Therefore, a failed cup-and-handle breakout—also on a pullback from the 200-day exponential moving average (200-day EMA; the blue wave in the chart below) near $0.00001755—could have SHIB eye an initial correction toward $0.00001306, down 20% from today’s price.

SHIB/USD daily price chart. Source: TradingView

Shiba Inu’s cup-and-handle setup could fizzle because of the token’s overbought daily relative strength index (RSI). Notably, the RSI has crossed above 70, which typically results in a period of sideways consolidation or correction.

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.

Shiba Inu eyes 50% rally as SHIB price enters ‘cup-and-handle’ breakout mode

The Shiba Inu breakout appears almost ten days after SHIB’s addition to Binance Card.

Shiba Inu (SHIB) broke out of its prevailing cup-and-handle pattern on Aug. 14, raising its prospects of securing additional gains in the coming weeks.

Shiba Inu could soar 50%

A cup-and-handle appears when the price falls and rises in a U-shaped trajectory in the first stage, followed by a swift move sideways or downward in the second. Notably, the price trend develops under a common resistance level.

Typically, cup-and-handle patterns resolve after the price breaks above the resistance level; SHIB did the same on Aug. 14 after rising 27% to $0.000016, as shown below.

SHIB/USD daily price chart. Source: TradingView

Per the rule of technical analysis, a cup-and-handle breakout target is determined by measuring the distance between the pattern’s lowest point and resistance line and adding it to the breakout point. As a result, SHIB could head toward $0.00002253.

In other words, a 50% price rally by September.

A nonsense rally, nonetheless?

Fundamentally, Shiba Inu’s 27% intraday price rally on Aug. 14 had no visible catalysts except a metric showing that SHIB’s burn rate surged by 825% in a day. But the amount of burned SHIB is worth only over $4,500.

Shiba Inu burn rate. Source: Shibburn.com

On the whole, however, the Shiba Inu network has burned over $6.36 million worth of SHIB tokens in its lifetime.

In addition, the Shiba Inu rally came almost ten days after Binance’s announcement to add SHIB support on its payment cards issued in Europe. In doing so, the crypto exchange raised SHIB’s potential to find new users in the emerging European cryptocurrency space.

Weak fundamentals could offset SHIB’s technically bullish bias, however, given that cup-and-handle setups have only a 61% success rate in meeting their profit targets, according to veteran analyst Tom Bulkowski.

Related: 3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

Therefore, a failed cup-and-handle breakout—also on a pullback from the 200-day exponential moving average (200-day EMA; the blue wave in the chart below) near $0.00001755—could have SHIB eye an initial correction toward $0.00001306, down 20% from the price on August 14.

SHIB/USD daily price chart. Source: TradingView

Shiba Inu’s cup-and-handle setup could fizzle because of the token’s overbought daily relative strength index (RSI). Notably, the RSI has crossed above 70, which typically results in a period of sideways consolidation or correction.

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.

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.

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.

Related: Bitcoin price surges to $21.8K, but analysts warn that the move could be a fakeout

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.

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.