Shiba Inu (SHIB) has jumped by over 78.50% year-to-date to reach $0.0000191 on Nov. 8, underperforming most of its top memecoin rivals, such as Dogecoin (DOGE) and Pepe (PEPE), which have climbed by over 115% and 668% in the same period.
DOGE/USD daily price chart. Source: TradingView
It is now showing potential to rally toward its 2024 highs, per a mix of technical and fractal indicators.
A 90% SHIB price boom next?
The first major signal for a SHIB price rally comes from the ongoing formation of a cup-and-handle pattern.
A cup and handle is a bullish chart pattern, named for its distinctive shape, which resembles a teacup, followed by a smaller, downward-drifting handle. It typically resolves in a breakout, with the upside target measured by adding the pattern’s maximum height to the breakout point.
As of Nov. 8, Shiba Inu was in the pattern’s handle formation stage, awaiting a breakout move above the common neckline resistance at around $0.00002032.
SHIB/USDT daily price chart. Source: TradingView
A confirmed breakout could have SHIB rise toward its cup and handle target of around $0.00003545, up around 90% from the current price levels, in early 2025. The target falls inside the March 2024’s resistance area, including the yearly high of around $0.00004567.
Capital rotation from DOGE boosts SHIB
Shiba Inu has underperformed Dogecoin primarily because of Elon Musk’s relentless promotion of the Department of Government Efficiency, his brainchild government agency to reduce excessive governmental spendings which—interestingly—had the same initials as the Dogecoin ticker DOGE.
But, as of Nov. 8, Dogecoin’s daily relative strength index (RSI) was above 70, which is considered “overbought,” boosting the top memecoin’s downside prospects.
On the other hand, SHIB’s daily RSI was around 58.42—a neutral area— suggesting its price has more room to run.
DOGE/USDT daily price chart. Source: TradingView
That is further visible in the widely-traded SHIB/DOGE pair, whose daily RSI show extremely “oversold” conditions. It signals that SHIB’s selling pressure compared to DOGE is becoming exhausted.
DOGE's RSI implies that its recent rally could be due for a cooling-off period. If profit-taking occurs, it may prompt a capital rotation from DOGE into SHIB, potentially fueling a SHIB rally.
SHIB/DOGE daily price chart. Source: TradingView
The bullish outlook for SHIB draws from its historical rebounds, where similar technical setups have led to 30% to 150% rallies.
The current conditions, marked by an oversold RSI and a key support area highlighted in red in the chart above, suggest the possibility of another strong SHIB/DOGE recovery.
If it happens, the first upside target looks to be around the 50-day EMA (shown as the red wave) at approximately 0.0001276 DOGE. Such a move would represent a gain of over 30% from the current price level, further bolstering the case for a 90% upside move suggested in the SHIB/USD analysis.
Source: X
Shiba Inu looks to Trump’s second term
The Shiba Inu ecosystem has proposed establishing a Strategic Hub for Innovation and Blockchain (S.H.I.B.) in a US city, aiming to transform it into a global center for blockchain technology and sustainable development.
Source: X
Donald Trump’s administration is generally expected to favor economic growth initiatives, deregulation, and public-private partnerships, all of which could positively impact blockchain development and technological hubs like S.H.I.B.
Related: Ethereum deploys nearly $500M to ecosystem projects in 2022–23: Report
The hub could lead to the development of new applications and use cases for SHIB, enhancing its value proposition among speculators.
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.