Is Shiba Inu (SHIB) Following Dogecoin's Footsteps? Here’s What You Should Know

Shiba Inu (SHIB) Follows Dogecoin's (DOGE) Rally Track: Technical Analysis

Amidst the U.S. elections, cryptocurrency markets exhibit a shift. While altcoins face selling pressure, meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) gain momentum. SHIB has surged over 4%, while DOGE has jumped nearly 10% today, marking a 56% increase in 30 days.

Technical Analysis: SHIB Mirrors DOGE's Accumulation and Breakout Patterns

Comparing their weekly charts, SHIB and DOGE exhibit a similar pattern.

• Accumulation Phase: Both coins spent time in a low-volatility range, accumulating tokens from weaker holders. DOGE broke out in mid-2024, suggesting SHIB may be at a similar stage.
• Bullish Breakout: DOGE broke out of a downward channel, indicating strength. SHIB is attempting a breakout from a descending channel. A confirmed breakout could trigger a similar rally for SHIB, potentially gaining 50% or more.
• Relative Strength Index (RSI): Both charts show increasing upward momentum. DOGE's RSI is above 65, indicating strong buying interest. SHIB's RSI is rising, suggesting increased buying pressure.

Potential Upside: Following DOGE's Path

If SHIB follows DOGE's pattern, a breakout could challenge resistance at $0.00002500-$0.00003000. This would represent a significant upside potential of 50-100% from current levels.

Market Sentiment: Favorable for Meme Coins

Historically, meme coins perform well after U.S. elections, driven by increased retail interest. DOGE surged after the 2020 election, and SHIB has shown similar patterns. DOGE's recent 56% gain suggests positive sentiment remains. SHIB may follow DOGE's path if sentiment persists.

Conclusion: Potential Rally, Speculative Nature Cautions

Technical analysis and historical trends indicate that SHIB could follow DOGE's recent rally. However, investors should exercise caution as meme coins are highly speculative and volatile. Conduct your own research before investing.