The price of Shiba Inu (SHIB) was at its lowest against top competitor Dogecoin (DOGE) in November 2022. Three months later, the momentum has reversed.
SHIB price increases 100% against DOGE
On February 4, 2023, the SHIB/DOGE pair reached 0.00001638 DOGE, up almost 100% three months after falling to 0.00000993 DOGE, the lowest level on record.
The sharp rebound came as investor focus turned to the upcoming launch of Shibarium, a Shiba Inu-backed layer 2 blockchain built on the Ethereum mainnet, announced on January 16.
As Cointelegraph reported, the SHIB price rally gained momentum in the middle References that Shibarium will be released on February 14th.
Dogecoin’s fundamentals looked pale in comparison, with Elon Musk suspending a bot from DOGE for violating Twitter’s rules.
Hello @elonmusk
Our Tipping Robot @MyDogeTip suspended without reason. It was a good bot used to spread Dogecoin throughout the community. pic.twitter.com/4PTa1siOA7
— DogeDesigner (@cb_doge) February 1, 2023
Still, both memecoins are off to a great start in 2023. SHIB/USD is up nearly 85% while DOGE/USD is up 36% year-to-date.
What’s next for SHIB/DOGE?
The SHIB/DOGE uptrend is expected to continue in the coming weeks, according to several technical indicators.
Specifically, the pair could climb to 0.00002181 by March 2023 based on historical cycles, up about 40% from current price levels, as shown in the chart below.
DOGE, SHIB price drop in February?
But while SHIB appears to be in a better position to outperform DOGE, both memecoins face headwinds against the dollar in February.
For example, Dogecoin is at risk of a minor correction against the dollar in the coming days as it exhibits a potential bullish wedge pattern.
Bullish wedges are bearish reversal patterns that show price is rising within two converging, rising trend lines. They are resolved after the price breaks below the lower trend line and falls as far as the maximum height of the wedge.
Applying the scenario to the DOGE daily price chart brings its downside target to $0.0850, down 10% from current price levels
Meanwhile, SHIB/USD also looks overstretched on its daily chart, based on its relative strength indicator of 81 — higher than 70 is considered “overbought.”
Additionally, it now faces a strong resistance zone around $0.00001517 where a pullback is likely. If this is the case, February could see the SHIB price drop to $0.00001300-$0.000013000 – its most volatile area in recent months, down 13%-20% from current price levels.
Conversely, a break above the $0.00001517 resistance would position the SHIB for a run to $0.00001651, the upside target of the prevailing bull setup.
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.