Will Shiba Inu tail Dogecoin’s price rally?
2023.04.04 13:09
The price of Shiba Inu (SHIB) increased over 10% in a day amid broader upside moves across meme cryptocurrencies in the past 24 hours. But will SHIB price rally further
SHIB price tails Dogecoin’s gains
On April 4, SHIB’s price reached $0.00001159 a day after rebounding from its local low of $0.00001049 — a 10.5% increase. Still, the meme-token underperformed most of its rivals, including Dogecoin (DOGE), which jumped over 30% in the same period.
On a year-to-date timeframe, SHIB and DOGE’s gains are nearly identical around 38%.
SHIB/USD versus DOGE/USDT and FLOKI/USDT year-to-date performance. Source: TradingView
SHIB price started rallying after Twitter, owned by self-proclaimed Dogecoin supporter Elon Musk, replaced its iconic blue bird logo with Dogecoin’s Shiba Inu symbol. SHIB/U has rallied similarly in the past due to Musk’s Dogecoin mentions on Twitter.
Interestingly, in October 2021, Musk clarified that he does not hold Shiba Inu.
Extended Shiba Inu price rally unlikely
From a technical standpoint, SHIB has been consolidating higher inside what appears to be a bear flag pattern, which may limit its ability to mirror a Dogecoin-like 30% price rally.
Related: Shiba Inu community divided over allegations of code, chain ID plagiarism
A bear flag is a bearish continuation pattern that form when the price trends higher briefly inside an ascending parallel channel after undergoing sharp declines. It resolves after the price breaks below the lower trendline with strong volumes and falls by as much as the previous downtrend’s height (flagpole).
As of April 4, SHIB tests the flag’s upper trendline (near $0.00001160) for a potential pullback toward the lower trendline (near $0.00001050) in April.
SHIB/USDT daily price chart. Source: TradingView
A further close below the lower trendline may trigger the bear flag breakdown scenario, with its downside target near $0.00000883 in April, down over 20% from current price levels.
Conversely, a breakout above the flag’s upper trendline risks invalidating the bearish setup. In doing so, SHIB’s upside target appears to be at its long-term descending trendline resistance — at around $0.00001400 in April, up 25% from current prices.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
