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Shiba Inu’s (SHIB) price has seen a 78.50% increase year-to-date, reaching $0.00002551 on November 12. However, it still lags behind other leading memecoins like Dogecoin and PEPE, which have risen by over 115% and 668%, respectively, in the same period.
Despite this, Shiba Inu is showing signs that it could be on the cusp of a substantial rally, with both technical and historical indicators suggesting a strong potential for upward movement.
SHIB Price Set for a 90% Surge?
One of the most significant signals hinting at a SHIB price rally is the development of a classic “cup-and-handle” chart pattern.
This bullish pattern resembles a teacup, featuring a rounded bottom followed by a smaller downward handle. Typically, a cup-and-handle pattern concludes with a breakout to the upside, and the target for this breakout is calculated by adding the pattern’s height to the neckline, where the breakout occurs.
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As of November 12, Shiba Inu’s price appears to be forming the handle portion of this pattern, breaking out above the neckline resistance. Taking into account that this has happened, SHIB could aim for a target of around $0.00003545, marking a 90% increase from its current price levels by early 2025. This target aligns with a resistance zone established in March 2024, where SHIB reached a yearly high near $0.00004567.
Interestingly, while Dogecoin’s daily relative strength index (RSI) recently crossed 70—indicating an overbought status and possible downside risk—SHIB’s RSI remains at a more neutral level around 58.42. This neutral RSI suggests that Shiba Inu may have more room to grow before reaching similar overbought levels.
Capital Shift from DOGE to SHIB
Shiba Inu’s underperformance relative to Dogecoin can partly be attributed to Elon Musk’s active promotion of his proposed “Department of Government Efficiency” (DOGE), which has drawn attention and capital toward Dogecoin.
The SHIB/DOGE trading pair is showing extremely oversold conditions on the daily RSI, indicating that the selling pressure on SHIB relative to DOGE might be nearing exhaustion. With Dogecoin’s recent rally potentially primed for a cooling-off period, profit-taking on DOGE may encourage a capital rotation into SHIB, setting the stage for a significant price rally.
Historically, similar setups in SHIB have led to substantial price jumps ranging from 30% to 150%. Present conditions—featuring an oversold RSI and strong support in the SHIB/DOGE pair—suggest that SHIB may soon recover relative to DOGE. Should this recovery materialize, the initial target would be the 50-day EMA, currently around 0.0001276 DOGE, representing a 30% gain from current levels and further supporting the potential for a 90% upside in SHIB’s USD value.
Potential Catalyst: The Shiba Inu Innovation Hub
The Shiba Inu team has proposed establishing a Strategic Hub for Innovation and Blockchain (S.H.I.B.) in a U.S. city, which would position SHIB as a focal point in the blockchain and sustainable development sectors.
If Donald Trump’s second term comes to pass, his administration’s inclination toward economic growth, deregulation, and public-private partnerships could favor blockchain projects like S.H.I.B. Such a hub could drive new applications and partnerships for SHIB, potentially enhancing its appeal and market value.
The combination of a bullish technical setup, capital rotation from Dogecoin, and potential real-world utility developments makes SHIB a contender for significant gains in the upcoming bull market. These three factors suggest that Shiba Inu might indeed be this cycle’s “sleeping giant,” with the potential for substantial upside in SHIB price.
