Cryptocurrency market has kicked off December on a bullish trajectory, with altcoins and memecoins leading the charge. Amid declining Bitcoin dominance, which has dropped from 61.53% to 57.38%, Shiba Inu ($SHIB ) has emerged as a standout performer. The second-largest memecoin has surged over 18% in the past 24 hours, following a critical resistance level breakout.
While Dogecoin ($DOGE ) has skyrocketed by 168% over the past month, Shiba Inu is swiftly gaining ground, posting a 78% increase during the same period. Technical indicators suggest SHIB could follow DOGE’s rally, potentially delivering an additional 64% upside.
SHIB Price Action: Parallels with Dogecoin’s Rally
Shiba Inu’s recent price movement mirrors the trajectory of Dogecoin before its significant rally. Currently trading at $0.000031, SHIB has broken above a crucial resistance level at $0.00002930, which now serves as a key support zone.
Dogecoin’s Breakout and Rally
Earlier this month, Dogecoin broke out of a long-term descending channel, catalyzing a spectacular 168% rally fueled by strong market momentum and renewed investor interest. The similarities in price structures between DOGE and SHIB hint at a comparable bullish pattern for Shiba Inu.
Shiba Inu’s Technical Setup
SHIB has also breached its descending channel, signaling a potential continuation of its upward trend. The breakout has already propelled SHIB to a 78% gain. With the Relative Strength Index (RSI) at 69.82, the token still shows room for further growth before entering overbought territory.
If Shiba Inu sustains its momentum, it could replicate DOGE’s rally. Key resistance levels to watch include $0.00003279 and $0.00004755. A bullish push beyond these levels could see SHIB reach $0.00005162, marking a 64% increase from its current price.
Market Context and Outlook
The broader market sentiment remains optimistic, with Bitcoin’s declining dominance creating a favorable environment for altcoins like SHIB. The breakout, combined with robust technical indicators, suggests Shiba Inu is well-positioned for a potential extended rally.
Conclusion
Shiba Inu’s (SHIB) recent breakout has placed it on a strong upward trajectory, echoing the performance of Dogecoin’s earlier rally. With key resistance levels in sight and market conditions favoring altcoins, SHIB could deliver substantial gains in the coming weeks. Investors and traders should closely monitor its price action as the memecoin appears poised for further growth.
