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Will history repeat with a 150% rally on Shiba Inu vs Dogecoin?
Written byKevin Lopez
November 3, 2022
- According to technical fractals, the price of Shiba Inu could surge by nearly 150% over Dogecoin, in the coming months.
- The pair's daily Relative Strength Index (RSI) signaled an extremely oversold signal after falling to an all-time low, suggesting a possible near-term recovery.
- Nonetheless, the SHIB/USDT pair has a 10%-15% risk of a price correction to $0.00001088 in the near term based on the recent volatility within the ascending triangle range.
SHIB price is still in the danger zone against USD, although it is not "overbought" like DOGE.
According to technical fractals, the price of Shiba Inu could surge by nearly 150% over its biggest meme coin rival, Dogecoin, in the coming months.
SHIB hits record low against DOGE
A bullish setup emerged as the SHIB/DOGE pair recovered slightly after falling to 0.0000841 (an all-time low) on November 1. The price level coincides with a downtrend line that has provided strong support for the pair since November 2021.
For example, the previous pullback of the Shiba to the above trendline occurred in May 2022, followed by a 100% rebound in the following three months. Likewise, in January 2022, the SHIB/DOGE pair gained more than 50% in less than a month.
Interestingly, all SHIB/DOGE rallies have 0.0002186 to 0.0002536 as the main upside target. This area coincides with the 0.786-1 Fibonacci line range for the pair drawn from a Fibonacci retracement chart drawn from a swing high of 0.0002536 to a swing low of 0.0000899, as shown below
Therefore, if history repeats itself, with upside targets in the 0.0002186 – 0.0002536 range, SHIB could again see a sharp bullish reversal with DOGE. In other words, prices will increase by at least 150% by the first quarter of 2023.
In addition, the pair's daily Relative Strength Index (RSI) signaled an extremely oversold signal after falling to an all-time low, suggesting a possible near-term recovery.
SHIB price at risk of more losses against USD
More signs of an upcoming SHIB/DOGE pair rally come from the individual performance of these meme coins against the USD.
Notably, Dogecoin surged more than 100% against the U.S. dollar in October following Elon Musk’s acquisition of the social media giant as traders assessed its potential to become a Twitter staple.
This pushed DOGE's daily RSI above 95 at the end of October, the most overbought level since April 2021. The coin is still technically overbought as of Nov. 3, suggesting a possible price correction in the coming days.
In other words, Dogecoin could fall to $0.055 or 60% from its current price level by the end of 2022, as previously reported.
On the other hand, Shiba Inu closed October up 10.5% with its RSI in the neutral 30-70 region on November 3, suggesting less selling pressure than DOGE.
Nonetheless, the SHIB/USDT pair has a 10%-15% risk of a price correction to $0.00001088 in the near term based on the recent volatility within the ascending triangle range, as shown in the chart below.
Meanwhile, a break below $0.00001088 could lead to a breakdown of the ascending triangle. Such glitches in a downtrend usually bring the price down to the maximum height of the pattern.
Therefore, in the event of a decisive crash, the price of Shiba Inu is at risk of falling to $0.00000682, implying a 45% correction by the first quarter.
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