3 signs Shiba Inu (SHIB) is the ‘sleeping giant’ of this bull market

Shiba Inu (SHIB) jumped more than 78.50% to reach $0.0000191 on November 8, undercutting most of its top memecoin rivals such as Dogecoin (DOGE) and Pepe (PEPE) which rose more than 115% and 668% in the same period.

It is now showing the potential to rally to a peak in 2024, per a mix of technical and segmental indicators.

Next 90% SHIB price increase?

The first major signal for the SHIB price rally comes from the formation of a continuous cube and handle pattern.

Cup and Handle is a bullish chart pattern, named for its unique shape, which resembles a teacup, followed by a slightly downward sloping handle. It is usually solved during breakouts, where the upside target is measured by adding the maximum height of the pattern to the breakout point.

In the year Since November 8, the Shiba Inu has been in a pattern handle formation, awaiting a move above the common neckline resistance around $0.00002032.

A confirmed split could push SHIB higher into the cup and target to $0.00003545, about 90% from current price levels, by early 2025. The target falls within the March 2024 resistance area, including the annual high of $0.00004567.

Capital rotation from DOGE increases SHIB

The Shiba Inu is largely due to Elon Musk's relentless promotion of the Department of Government Efficiency, his idea for a government agency that cuts excessive government spending—which ironically has the same initials as the Dogecoin symbol DOGE.

But since November 8, Dogecoin's daily relative strength index (RSI) has been above 70, which is considered “overbought”, increasing the possibility of memecoin's low.

On the other hand, SHIB's daily RSI was around 58.42—a neutral area—suggesting that the price has more room to run.

That is even more evident in the widely traded SHIB/DOGE pair, whose daily RSI shows extremely “oversold” conditions. It suggests that SHIB's selling pressure is weakening compared to DOGE's.

DOGE's RSI indicates that its recent rally may be in for a cooling period. If profit-taking occurs, it may require capital rotation from DOGE to SHIB, which could fuel SHIB's rally.

SHIB's mass spec draws from its historical reforms, where similar technical settings have yielded rallies of 30% to 150%.

Current conditions, with the oversold RSI and the key support area highlighted in red on the chart above, suggest the possibility of another strong SHIB/DOGE recovery.

If it occurs, the first reversal target would appear at the 50-day EMA (shown as a red wave) around the 0.0001276 DOGE. Such a move would represent a gain of more than 30% from current price levels, further strengthening the case for the 90% upside move suggested in the SHIB/USD analysis.

Shiba Inu looks at Trump's second term

The Shiba Inu ecosystem has proposed the establishment of a Strategic Center for Innovation and Blockchain (SHIB) in the US city, aiming to transform it into a global hub for blockchain technology and sustainable development.

Donald Trump's administration is widely expected to support economic growth initiatives, deregulation, and public-private partnerships, all of which are driven by blockchain development and technology hubs like SHIB.

Related: Ethereum to deploy nearly $500M to ecosystem projects in 2022–23

The Center can create new applications and use cases for SHIB, which will enhance the value proposition among evaluators.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.