Shiba InuSHIB) has surged over 78.50% year-to-date to $0.0000191 on November 8, underperforming most of its major memecoin rivals, such as Dogecoin (DOGE) and Pépé (PEPE), which climbed more than 115% and 668% over the same period.
DOGE/USD daily price chart. Source: TradingView
It is now showing rally potential towards its 2024 highs, according to a mix of technical and fractal indicators.
A 90% SHIB price boom next?
The first major signal of higher SHIB price comes from the continued formation of a cup and handle pattern.
A cup and handle is a bullish chart pattern, named for its distinctive shape, which resembles a teacup, followed by a smaller handle that drifts downward. It usually resolves through a breakout, with the bullish target measured by adding the maximum height of the pattern to the breakout point.
As of November 8, Shiba Inu was in the handle formation phase of the pattern, awaiting a breakout move above the common neckline resistance at around $0.00002032.
SHIB/USDT daily price chart. Source: TradingView
A confirmed breakout could lead SHIB to reach its cup-and-handle target of around $0.00003545, up around 90% from current price levels, in early 2025. The target is within the resistance zone of March 2024, including the yearly high of around $0.00004567.
DOGE Capital Rotation Strengthens SHIB
Shiba Inu has Dogecoin underperformed mainly because of Elon Musk’s incessant promotion of Ministry of Government Effectivenesshis original government agency aimed at reducing excessive government spending which, interestingly, bore the same initials as the Dogecoin DOGE ticker.
But, as of November 8, Dogecoin’s daily relative strength index (RSI) was above 70, which is considered “overbought,” reinforcing the top memecoin’s downside prospects.
On the other hand, SHIB’s daily RSI was around 58.42, a neutral zone, suggesting that its price has more room to run.
DOGE/USDT daily price chart. Source: TradingView
This is even more visible in the widely traded SHIB/DOGE pair, whose daily RSI shows extremely “oversold” conditions. This indicates that the selling pressure of SHIB against DOGE is exhausting.
DOGE’s RSI implies that its recent rally could be due to a cooling off period. If profit-taking occurs, this could cause a capital rotation from DOGE to SHIB, potentially fueling a SHIB rally.
SHIB/DOGE daily price chart. Source: TradingView
The bullish outlook for SHIB builds on its historical rallies, where similar technical setups have led to rallies of 30-150%.
Current conditions, marked by an oversold RSI and a key support area highlighted in red in the chart above, suggest the possibility of another strong rally in SHIB/DOGE.
If this happens, the first upside target appears to be around the 50-day EMA (represented by the red wave) at around 0.0001276 DOGE. Such a move would represent a gain of over 30% from the current price level, strengthening the case for a 90% upside suggested in the SHIB/USD analysis.
Source: X
Shiba Inu looks ahead to Trump’s second term
The Shiba Inu ecosystem has propose establish a Strategic Hub for Blockchain Innovation (SHIB) in a US city, with the aim of transforming it into a global hub for blockchain technology and sustainability.
Source: X
Donald Trump’s administration is generally expected to favor economic growth initiatives, deregulation and public-private partnerships, all of which could have a positive impact on the development of blockchain and technology hubs like SHIB.
Related: Ethereum deploys nearly $500 million in ecosystem projects in 2022-2023: report
The hub could lead to the development of new applications and use cases for SHIB, improving its value proposition among speculators.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.