The price of Shiba Inu (SHIB) was the lowest compared to its top rival Dogecoin (DOGE) in November 2022. Three months later, the dynamics have changed.
SHIB price increased by 100% compared to DOGE
On February 4, 2023, the SHIB / DOGE pair reached 0.00001638 DOGE, up almost 100% three months after dropping to 0.00000993 DOGE, the lowest level on record.
The sharp recovery came as investor focus shifted to the launch of Shibarium, the Shiba Inu-powered layer-2 blockchain built on Ethereum’s mainnet, which was announced on January 16.
As Cointelegraph reported, SHIB’s price rebound gained momentum in the middle report that Shibarium will live on February 14.
Dogecoin’s fundamentals pale in comparison, with Elon Musk suspending the DOGE tipping bot for violating Twitter’s rules.
Hey @elonmusk
Our Tipping Bot @MyDogeTip suspended without reason. It is a good bot used to spread Dogecoin throughout the community. pic.twitter.com/4PTa1siOA7
– DogeDesigner (@cb_doge) February 1, 2023
However, both memecoins are off to a good start for 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 recovery trend is set to continue in the coming weeks, according to several technical indicators.
That is, the pair could go up to 0.00002181 in March 2023 based on the historical cycle, up about 40% from the current price level, as shown in the chart below.
DOGE, SHIB prices down in February?
But while SHIB appears to be in a better position to beat DOGE, both memecoins face headwinds against the dollar in February.
For example, Dogecoin is at risk of a small correction against the dollar in the coming days as it represents a potential rising wedge pattern.
Rising wedges are bearish reversal patterns that show prices rising on two converging, upward trend lines. They decide after the price drops below the lower trend line and drops to the maximum height of the wedge.
Applying the scenario to the daily DOGE price chart brings the target down to $0.0850, down 10% from the current price level
Meanwhile, SHIB/USD also appears overstretched on the daily chart, based on the relative strength index of 81 – more than 70 is considered “overbought.”
Moreover, it is currently facing a strong resistance zone around $0.00001517 where a pullback is likely. If so, February could see the price of SHIB drop to $0.00001300-$0.000013000 – the most territory in the last month, down 13%-20% from the current price level.
Conversely, a break above the $0.00001517-resistance will position SHIB for a run to $0.00001651, the upward target of its valid bull pennant setup.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.