Shiba Inu price drops to record low vs Dogecoin — Will history repeat with a 150% rally?

Shiba Inu (SHIB) price can rise by nearly 150% versus its top meme-coin rival, Dogecoin (DOGE), in the coming months, based on a technical fractal.

SHIB hits record low against DOGE

The bullish setup appears as the SHIB/DOGE pair rebounded slightly after dropping to 0.0000841 — its lowest level ever — on Nov. 1. The price level coincided with a descending trendline that has served as strong support for the pair since November 2021.

For instance, Shiba Inu’s previous drop to the said trendline occurred in May 2022, which preceded a 100% recovery rally in the next three months. Similarly, in January 2022, the SHIB/DOGE pair rebounded by more than 50% in less than a month.

Interestingly, all the SHIB/DOGE’s rebound moves reached the 0.0002186-0.0002536 range as their primary upside targets. This area coincides with the pair’s 0.786-1 Fib line range, derived from the Fibonacci retracement graph drawn from the 0.0002536 swing high to the 0.0000899 swing low, as shown in the chart below.

SHIB/DOGE daily price chart. Source: TradingView

Therefore, SHIB could once again see a sharp bullish reversal versus DOGE if history repeats, with the upside target in the 0.0002186-0.0002536 range. In other words, at least a 150% price rally by Q1 2023.

In addition, the pair’s daily relative strength index (RSI) signals extreme oversold conditions after dropping to its lowest levels in history, suggesting that a rebound is likely in the near future. 

SHIB price risks more losses in USD pair

More cues about an imminent SHIB/DOGE pair rally come from these memecoins’ individual performances versus the United States dollar.

Notably, Dogecoin price rallied by more than 100% versus the dollar in October as traders assessed its potential to become an integral part of Twitter after Elon Musk’s takeover of the social media giant.

DOGE/USD three-day price chart. Source: TradingView

This pushed DOGE’s daily RSI over 95 in late October, the most overbought since April 2021. The coin remains technically overbought as of Nov. 3, hinting at a potential price correction in the coming days.

In other words, Dogecoin could drop toward…



Recommended For You

Leave a Reply

Your email address will not be published.