Shiba Inu price rebounds 100% after record lows against Dogecoin — More upside ahead?
2 min read
In November 2022, the price of Shiba Inu (SHIB) reached its lowest point compared to its rival, Dogecoin (DOGE). However, this trend has reversed in the three months later.
SHIB price rises 100% versus DOGE
The SHIB/DOGE pair reached 0.00001638 DOGE on February 4th, 2023, representing a nearly 100% increase from its previous low of 0.00000993 DOGE.
This sharp recovery was driven by the announcement of the upcoming launch of Shibarium, a layer-2 blockchain built on the Ethereum mainnet and backed by Shiba Inu, which was unveiled on January 16th.
According to a report by Cointelegraph, the price of SHIB has experienced a surge in growth due to the upcoming launch of Shibarium on February 14th.The impending launch of Shibarium has been met with high investor interest, leading to a significant increase in the SHIB price.
In comparison, Dogecoin has experienced weaker performance, with its recent dip caused by 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
Nevertheless, both memecoins have had a successful start to 2023, with SHIB/USD up 85% and DOGE/USD up 36% year-to-date..
What’s next for SHIB/DOGE?
Technical indicators suggest that the SHIB/DOGE recovery trend is likely to continue in the coming weeks
Based on historical cycles, the SHIB/DOGE pair is expected to reach 0.00002181 by March 2023, a 40% increase from its current price, as shown in the chart below.
DOGE, SHIB price downside in February?
While SHIB is expected to perform better than Dogecoin in February, although both memecoins may face challenges against the dollar
Dogecoin may experience a slight correction versus the dollar due to a potential rising wedge pattern, which is a bearish reversal pattern showing a rising price within two converging trendlines.
If this scenario plays out, Dogecoin’s target price could fall 10% to $0.0850 from current price levels.
On the other hand, SHIB also looks overbought with a relative strength index of 81, and faces strong resistance at $0.00001517 which could result in a pullback to $0.00001300-$0.000013000, down 13% to 20% from current levels.
However, if it breaks above the resistance, it could reach $0.00001651, the upside target of its 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.
