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

Published at: Feb. 5, 2023

Shiba Inu (SHIB) price was at the lowest versus its top rival Dogecoin (DOGE) in November 2022. Three months later, the dynamics have flipped. 

SHIB price rises 100% versus DOGE

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

The sharp recovery came as investors' focus shifted to the impending launch of Shibarium, a Shiba Inu-backed layer-2 blockchain built on the Ethereum mainnet, announced on Jan. 16.

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

In comparison, Dogecoin's fundamentals looked pale, with Elon Musk suspending a DOGE tipping bot for violating Twitter's rules.

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

Nonetheless, both memecoins have had a great start to 2023. SHIB/USD is up almost 85% while DOGE/USD is up 36% year-to-date. 

What's next for SHIB/DOGE?

The SHIB/DOGE recovery trend is set to continue in the coming weeks, according to several technical indicators. 

Namely, the pair could climb to 0.00002181 by March 2023 based on historic cycles, up around 40% from current price levels, as shown in the chart below.

DOGE, SHIB price downside in February?

But while SHIB appears to be in a better position to outperform DOGE, both memecoins face headwinds against the dollar in February. 

For instance, Dogecoin risks a small correction versus the dollar in coming days as it paints a potential rising wedge pattern.

Rising wedges are bearish reversal patterns showing the price rising inside two converging, ascending trendlines. They resolve after the price breaks below the lower trendline and falls by as much as the wedge's maximum height.

Applying the scenario on the daily DOGE price chart brings its downside target to $0.0850, down 10% from current price levels

Meanwhile, SHIB/USD also looks overstretched on its daily chart, based on its relative strength index of 81 — higher than 70 is considered "overbought."

In addition, it's now facing a strong resistance zone at around $0.00001517 where a pullback is likely. If this is the case, February could see SHIB price drop to $0.00001300-$0.000013000 — its most voluminous area in recent months, down 13%-20% from current price levels.

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

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Tags
Markets
Altcoin Watch
Altcoin
Market Analysis
Dogecoin
Tech Analysis
Shiba Inu
Related Posts
Top dogs: Newbie Shiba Inu bites back, gains 25% vs. Dogecoin in February
Shiba Inu (SHIB) is now the 13th-largest cryptocurrency with its market valuation sitting near $18 billion, right behind its rival meme-cryptocurrency Dogecoin (DOGE), worth roughly $20 billion. But despite falling behind in ranks, SHIB's price has outperformed DOGE in 2022. February has seen a sharp recovery for the SHIB/DOGE pair, in particular, rising by over 38% month-to-date (MTD). As a result, Shiba Inu gained more than 50% MTD against the dollar versus Dogecoin's 11%, as shown in the chart below. Most of the February's — and, in fact, 2022's — gains in the SHIB market surfaced on two dates: Feb. …
Markets / Feb. 10, 2022
Shiba Inu (SHIB) fetches 30% gain on Robinhood listing rumor and bullish chart pattern
Shiba Inu (SHIB) seems to be preparing for a bullish breakout as a falling wedge pattern begins to form. The price of SHIB has been trending lower inside an area defined by two contracting trendlines while accompanying a decline in trading volume. That shows that investors have been less concerned about the downtrend. As a result, falling wedges typically provide an ideal springboard for an upside break once the price closes above the structure's upper trendline. On Thursday, SHIB showed signs of following a similar topside break. Notably, the token briefly closed above the falling wedge's upper trendline, hitting an …
Markets / Jan. 14, 2022
Dogecoin signals bottoming out as DOGE rebounds 30% in two weeks — What's next?
A brutal correction witnessed in the Dogecoin (DOGE) market between May 2021 and February 2022, which saw the price dropping by almost 85%, appears to have come to a halt this month. DOGE/USD rebounds 30% in two weeks DOGE experienced strong dip-buying when its price crashed to levels around $0.10 two weeks ago, resulting in a 30% rebound move to $0.14 as of March 27. Meanwhile, the coin's upside retracement originated at a support level that constitutes a "falling wedge" setup, signaling an extended bullish reversal in the weekly sessions ahead. In detail, a falling wedge pattern occurs when the …
Bitcoin Price / March 27, 2022
What is ShibaSwap and how does it work?
ShibaSwap is a DeFi platform featuring decentralized exchange (DEX) and passive income-generating services like staking, liquidity pools, and yield farming in its ecosystem. Launched in July 2021, ShibaSwap is a fork of SushiSwap, a popular DEX tweaked from Uniswap (UNI), the world's leading DEX by volume. But unlike its rivals, ShibaSwap's core purpose has been mostly about boosting the utility of Shiba Inu tokens. What are Shiba Inu tokens? ShibaSwap uses three main tokens, namel Shiba Inu (SHIB), Doge Killer (LEASH), and Bone (BONE). Let's discuss them in detail as follows. Shiba Inu (SHIB) Shiba Inu (SHIB) is a Dogecoin-inspired …
Markets / Jan. 10, 2023
SHIB price preps for 75% boom as Shiba Inu teases L2 blockchain launch
Shiba Inu is hoping to become more than just a Dogecoin-inspired meme cryptocurrency as it comes closer to launching its layer-2 network. Meanwhile, its native token SHIB has emerged as one of the best-performing cryptocurrencies so far in 2023. SHIB price jumps 60% in 2023 SHIB's price has rallied nearly 60% year-to-date (YTD) to $0.00001294, its highest since early November 2022. The gains started appearing mainly due to favorable macro conditions that prompted similar rallies elsewhere in the crypto market. Nonetheless, the Shiba Inu price rally picked up momentum as investors assessed its announcement of the upcoming beta release of …
Markets / Jan. 18, 2023