SHIB price technicals hint at another possible 40% rally for Shiba Inu versus Dogecoin as Shibarium comes into focus

By Selena On Feb 5, 2023

In November 2022, the price of Shiba Inu was at its lowest compared to its principal rival Dogecoin (DOGE). After three months, the circumstances changed. The sudden recovery happened when investors’ attention turned to the upcoming launch of Shibarium, a layer-2 blockchain supported by Shiba Inus and constructed on the Ethereum mainnet, which was announced on January 16.

Hey @elonmusk 👋

Our Tipping bot @MyDogeTip got suspended for no reason. It was a good bot used to spread Dogecoin across the community. 🙏 pic.twitter.com/4PTa1siOA7

— DogeDesigner (@cb_doge) February 1, 2023

Shibarium’s price recovery accelerated on news that it will launch on February 14. Dogecoin’s fundamentals appeared weak in comparison after Elon Musk suspended a tipping bot for DOGE for breaking Twitter’s rules.

Nevertheless, 2023 has started well for both meme coins. SHIB/USD is up approximately 85% year to date, while DOGE/USD is up 36%. Numerous technical indications predict that the SHIB/DOGE recovery trend will continue in the upcoming weeks.

According to historical cycles, the pair might increase by almost 40% from current price levels to 0.00002181 by March 2023, as indicated in the chart below.

SHIB/DOGE daily price chart | Source: TradingView

However, even though SHIB seems to be in a stronger position to outperform DOGE in February, both meme coins are expected to struggle against the dollar. For instance, Dogecoin may have a minor correction in the next few days as it forms the potential shape of a rising wedge.

The price rises inside two convergent, ascending trendlines in rising wedges, a bearish reversal pattern. They are resolved when the price falls to the maximum height of the wedge and breaks below the lower trendline.

When the scenario is applied to the daily DOGE price chart, the downside objective drops to $0.0850, a 10% decrease from the current price.

DOGE/USD daily price chart featuring rising wedge setup | Source: TradingView

Based on its daily chart’s relative strength index of 81, which is higher than 70 and is regarded as “overbought,” SHIB/USD likewise appears overstretched.

Additionally, it is currently up against a significant resistance area around roughly $0.00001517, where a decline is anticipated. If this is the case, SHIB price could decrease in February by 13%–20% from current price levels, reaching its most active range in recent months of $0.00001300–$0.000013000.

On the other hand, a break above the $0.00001517 resistance would set up SHIB for a run to the upside goal of its current bull pennant formation, $0.00001651.

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