Is Shiba Inu (SHIB) Following in Dogecoin’s Footsteps? Here’s What You Should Know

Date: Tue, Nov 05, 2024, 11:59 AM GMT

In the midst of the U.S. elections, we’re seeing a dynamic shift in the cryptocurrency market. While major altcoins show signs of selling pressure, meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) are capturing attention with significant upward momentum. SHIB’s price has surged over 4% today, and DOGE has gained nearly 10%, marking a notable 56% increase over the last 30 days.

This begs the question: Is SHIB following in DOGE’s footsteps for a potential rally?

Technical Analysis: SHIB and DOGE Comparison

Examining the weekly charts of both Shiba Inu (SHIB) and Dogecoin (DOGE), we can identify a pattern that suggests SHIB may be mirroring DOGE’s recent accumulation phase and breakout behavior.

1.Accumulation Zone: Both SHIB and DOGE spent extended periods in a low volatility range — an accumulation phase. This period often acts as a base for a future breakout, as strong hands accumulate tokens from weaker holders. For DOGE, this phase lasted until mid-2024 before it started showing upward momentum, while SHIB appears to be at a similar stage now.

2.Bullish Breakout Pattern:

• Dogecoin: DOGE has broken out of a downward channel, pushing past key resistance levels and indicating strength. This breakout pattern reflects a classic reversal from a bearish trend to a more bullish outlook, suggesting the possibility of continued upward movement.
• Shiba Inu: SHIB, currently within a descending channel similar to DOGE’s recent pattern, is attempting to break out. A confirmed breakout above the key resistance around $0.00002000 could indicate that SHIB is primed for a similar rally, potentially aiming for a 50% or more gain if it follows DOGE’s path.

3.Relative Strength Index (RSI):

• On both charts, the weekly RSI is pointing toward a gradual upward momentum. DOGE’s RSI recently crossed above the 65 level, showing strong buying interest. SHIB’s RSI, currently around 50, is inching upward, reflecting an increase in buying momentum that could push it higher if SHIB breaks out of its descending channel.

4.Targets and Potential Upside:

• If SHIB follows DOGE’s bullish pattern, a breakout could see SHIB challenging resistance levels around $0.00002500 to $0.00003000. This would represent an impressive upside, potentially in the range of 50% to 100% gains from the current price, depending on market conditions.

Market Sentiment

Historically, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) tend to perform well after U.S. elections, benefiting from increased retail interest and market optimism. Following the 2020 election, DOGE saw a significant rally, driven by retail enthusiasm—SHIB has shown similar patterns around major events.

Currently, DOGE is up 56% over the past 30 days, and SHIB is showing gains as well, suggesting that these historical trends could repeat. If positive sentiment continues, SHIB may indeed follow DOGE’s path, but investors should remember the speculative nature of meme coins.

Conclusion

The combination of historical post-election performance and the current bullish technical patterns suggest that SHIB could be poised to follow DOGE’s recent trajectory. However, as always, investors should keep in mind that meme coins are highly speculative and subject to high volatility.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

Written by

Nilesh Hembade

Nilesh Hembade is the Founder and Author of Coinsprobe, with 5+ years of experience in cryptocurrency and blockchain. Since launching the platform in 2023, he delivers daily, research-driven insights through market analysis, on-chain data, and technical research. His work has been featured on Binance, Bitget, and CoinMarketCap. He is also certified through Binance Academy (NFT Certificate).

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