Shiba Inu Mirrors Dogecoin: Patterns Signal Explosive SHIB Meme Coin Price Rally

Shiba Inu (SHIB) and Dogecoin (DOGE), two popular meme tokens, exhibit chart patterns that suggest a potential price movement, according to technical analyst Charting Guy.

In a post on , Charting Guy highlighted the similarities in SHIB and DOGE's price action. He identified key levels and trends that could lead to an upward breakout for both tokens.

Fibonacci Levels Provide Support and Resistance

Charting Guy's analysis of SHIB's weekly chart indicates that the token is holding at the 0.236 Fibonacci retracement level, approximately $0.000013089, after encountering resistance at the "Golden Pocket" between the 0.618 and 0.786 levels.

The Golden Pocket has served as a strong resistance zone, hindering SHIB's upward moves. However, if the 0.236 level holds, SHIB may seek support around $0.000016434, near the 0.382 Fibonacci level.

Fibonacci retracement levels help identify potential support and resistance areas. SHIB's trajectory will be influenced by these levels if it breaks out of its consolidation phase.

Descending Triangle Pattern Points to Breakout

A descending triangle pattern has been forming on SHIB's chart, hinting at a potential breakout. Such patterns typically indicate either a downside breakout or an imminent upside breakout. In this case, an upward breakout is anticipated.

Charting Guy's bullish forecast aligns with this pattern, suggesting a breakout that could result in an explosive price surge for SHIB. Additionally, if SHIB breaks above the triangle with sufficient volume, it could signal the beginning of the anticipated wave 3. In Elliott Wave Theory, wave 3 often represents the most significant price movement.

Elliott Wave Theory Predicts Potential Highs

In his tweet, Charting Guy references the first two waves of Elliott Wave Theory, with SHIB currently in the loading phase for wave 3. Wave 3 is typically characterized by the largest price move, often surpassing previous highs.

This theory suggests that SHIB could potentially exceed its all-time high (ATH) in the future.

Momentum Indicators Suggest Growth Potential

Charting Guy's analysis also considers momentum indicators such as the Stochastic RSI and regular RSI. Both indicators suggest that SHIB is not currently overbought, indicating that there is room for further upward movement.

The Stochastic RSI, in particular, shows that SHIB is in an oversold region, which could present a buying opportunity.