While Shiba Inu has consistently surged in price this year, the performance of the cryptocurrency was behind some close rivals. SHIB has added around 78.50% so far this year, exchanging hands at $0.0000191 on November 8; at the same time, DOGE surged over 115%. However, SHIB’s technical indicators reveal that it might be the “sleeping giant” in the current bull run, which could break out massively anytime soon. Here are three signs that could mean SHIB is ready for strong movement.
1. Bullish Cup-and-Handle Pattern
First strong indicator: The “cup-and-handle” pattern forms in the price chart of SHIB. It is a bullish chart pattern shaped like a teacup, followed by a downward sloping “handle.” To traders, this is generally a sign of gains to come, with the handle consolidating the stock before the breakout.
Here’s what to know about the potential SHIB breakout:
- Current Stage: SHIB is in the handle phase, with resistance at $0.00002032.
- Breakout Potential: A confirmed breakout could target $0.00003545, representing a 90% increase.
- Timeline: This breakout might occur in early 2025, with March 2024’s high of around $0.00004567 serving as additional resistance.
If SHIB can move past the handle resistance, it may quickly rise to these levels, bringing substantial gains for investors.
2. Capital Rotation from Dogecoin (DOGE)
Another factor hinting at a possible SHIB rally is the potential shift in capital from Dogecoin. Presently, DOGE’s Relative Strength Index is above 70, an area when an asset is said to be “overbought” and hence may see profit-taking. On its part, SHIB’s RSI is more neutral at 58.42, indicating more room for upward movement in price action with no immediate sell-offs.
Comparison of DOGE and SHIB RSI:
Â
Indicator | DOGE | SHIB |
RSI Value | Above 70 | Around 58.42 |
Implication | Overbought | Neutral |
Potential Move | Cool-off period | More growth |
In addition, the SHIB/DOGE trading pair indicates oversold conditions for SHIB compared to DOGE. This imbalance could prompt a shift in trading volume from DOGE to SHIB, further driving SHIB’s value up. Historically, similar setups have led to gains between 30% and 150% for SHIB, which strengthens the case for a potential 90% upside.
3. Future Plans for a U.S.-Based Blockchain Hub
The Shiba Inu community has ambitious plans to establish a “Strategic Hub for Innovation and Blockchain” (S.H.I.B.) in a U.S. city. This initiative aims to create a global center for blockchain development, bringing more attention and utility to the Shiba Inu ecosystem.
Several factors make this project exciting for SHIB investors:
- Development Focus: The hub could foster blockchain innovation, likely enhancing SHIB’s use cases.
- Political Climate: A potential second Trump administration may focus on economic growth and deregulation, which could boost blockchain projects like S.H.I.B.
- Speculative Value: Increased attention to SHIB’s ecosystem may attract more investors, positively impacting SHIB’s price.
In summary, these three factors—technical patterns, capital rotation potential, and plans for a blockchain hub—create a favorable outlook for SHIB. While it’s impossible to guarantee a rally, these signals indicate that SHIB could experience a substantial price surge soon.
Disclaimer
FAQ
Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.
Cryptocurrency wallets are digital tools for storing and managing your crypto assets.
Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.