Shiba Inu price rebounds 100% after record lows against Dogecoin — more upside ahead?

The Shiba Inu (SHIB) value was on the lowest versus its prime rival, Dogecoin (DOGE), in November 2022. Three months later, the dynamics have flipped. 

SHIB value rises 100% versus DOGE

On Feb. 4, 2023, the SHIB/DOGE pair reached 0.00001638 DOGE, up virtually 100% three months after bottoming out at 0.00000993 DOGE, its lowest stage on document.

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SHIB/DOGE day by day value chart. Supply: TradingView

The sharp restoration got here as traders’ focus shifted to the approaching launch of Shibarium, a Shiba Inu-backed layer-2 blockchain constructed on the Ethereum mainnet, introduced on Jan. 16.

As Cointelegraph reported, the SHIB price rebound gained momentum amid reviews that Shibarium will go stay on Feb. 14.

Compared, Dogecoin’s fundamentals appeared pale, with Elon Musk suspending a DOGE tipping bot for violating Twitter’s guidelines.

Nonetheless, each memecoins have had an excellent begin to 2023. SHIB/USD is up virtually 85%, whereas DOGE/USD is up 36% year-to-date. 

What’s subsequent for SHIB/DOGE?

In accordance with a number of technical indicators, the SHIB/DOGE restoration pattern is set to continue in the coming weeks

Primarily based on historic cycles, the pair may climb to 0.00002181 by March 2023, which might be a 40% acquire from present value ranges, as proven within the chart beneath.

SHIB/DOGE day by day value chart. Supply: TradingView

DOGE, SHIB value draw back in February?

However whereas SHIB seems to be in a greater place to outperform DOGE, each memecoins face headwinds in opposition to the greenback in February. 

As an example, Dogecoin dangers a small correction versus the greenback within the coming days because it paints a possible rising wedge sample.

Rising wedges are bearish reversal patterns exhibiting the value rising inside two converging, ascending trendlines. They resolve after the value breaks beneath the decrease trendline and falls by as a lot because the wedge’s most peak.

Making use of the state of affairs on the day by day DOGE value chart brings its draw back goal to $0.0850, down 10% from present value ranges

DOGE/USD day by day value chart that includes rising wedge setup. Supply: TradingView

In the meantime, SHIB/USD additionally appears to be like overstretched on its day by day chart, based mostly on its relative energy index of 81 — larger than 70 is taken into account “overbought.“

As well as, it’s now dealing with a robust resistance zone at round $0.00001517, the place a pullback is probably going. If that is so, February may see the SHIB price drop to $0.00001300–$0.000013000 — its most voluminous space in current months, down 13%–20% from present value ranges.

SHIB/USD day by day value chart. Supply: TradingView

Conversely, a break above the $ 0.00001517 resistance would place SHIB for a run to $0.00001651, the upside goal of its prevailing bull pennant setup. 

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.