Shiba Inu (SHIB) is considering making a move similar to Dogecoin's (DOGE) astronomical gain during the 2021 bull market, which propelled DOGE to the position of leading meme cryptocurrency.
It seems like SHIB could be about to have a big breakout if its present cycle is any indication of what DOGE's price movement has been like in the past. In a post on TradingView on September 26, crypto trading specialist Trading Shot noted that Shiba Inu just broke above its 50-week moving average (MA50) after many months of consolidation, which suggests that SHIB might follow in the footsteps of the leading meme currency.
With support from its long-term 200-week moving average, the cryptocurrency is vying with the upper limit of a seven-month bearish channel, which is a crucial resistance point.
This falling channel was also recognized by the expert as a "bull flag," a pattern that often precedes strong rallies. The technological setup may put SHIB up for a huge price spike, similar to Dogecoin's run from 2018 to 2021.
The researcher looked at DOGE's performance from 2018 to 2021, a time frame that shows a lot of parallels to SHIB, in order to compare the two meme currencies. Looking back at Dogecoin's price action in 2018, we can see that it reached a peak, then fell, creating a downward channel and a bullish one-week golden cross. This occurred when the 50-week moving average crossed over the 200-week moving average. To set off Dogecoin's meteoric rise, this configuration was key.
The Shiba Inu, in contrast, seems to be modelling a comparable shape. After reaching its peak in October 2021, the token also started a declining trend. Specifically, a one-week golden cross has just developed on SHIB. As a result, SHIB may be preparing for a meteoric surge in the next months if market emotions are correlating.
Not only did technical indications and overall market mood contribute to DOGE's surge, but so were endorsements from famous people. Elon Musk, CEO of Tesla (NASDAQ: TSLA), was a major factor in the surge, as his mentions to the meme currency in his X postings caused significant purchasing pressure.
Since Dogecoin often trades in line with the market as a whole, Musk's recent mentions of the token don't seem to have much of an effect. It would be fascinating to see whether SHIB is going to depend entirely on technical indicators and general market sentiment.
SHIB's upcoming all-time peak
Even the Fibonacci retracement lend credence to this optimistic prediction. The professional has noted that SHIB is still inexpensive as it is trading below the 0.5 Fibonacci retracement line. Specifically, the experts predict that the token's price might reach $0.00035—the 1.5 Fibonacci extension—if the present underlying optimistic feelings are sustained.
And another well-known crypto expert, Alan Santana, thinks SHIB will go up in value in the next several months. He noted that SHIB's price is leveling out after a steep decline from the end of 2022 to the middle of 2023, suggesting that gains may be on the horizon.
Potential increases for the meme currency, according to him, might be as high as 1,111%, 654%, 205%, and 101%. Consequently, the expert said that by the conclusion of the year 2024's fourth quarter, investors may expect a new all-time high.
Graph analyzing the SHIB pricing. Alan Santana of TradingView is the source.
Not only does technical analysis point to an impending price increase, but word of a possible stablecoin on the network is also resonating with the Shiba Inu community. According to Finbold, 'Lucie,' the marketing head for SHIB, hinted that the Shibarium ecosystem would soon have a stablecoin.
Although we still don't know when SHIB will begin, the revelation caused a massive influx of cash, and the value of the cryptocurrency soared to $1 billion in only one day. Increasing SHIB's liquidity in this way might lead to a price increase.
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