Should I Buy Shiba Inu (SHIB)? 3 Signals to Consider

Shiba Inu (SHIB) has maintained its presence as a notable contender of the memecoin world. Often overlooked in favour of more prominent meme coins like Dogecoin (DOGE) and the explosive newcomer Pepe (PEPE), SHIB has still posted a respectable 78.50% year-to-date increase, reaching $0.0000191 as of November 8, 2024. While its competitors have surged by 115% and 668% respectively, recent analysis suggests that Shiba Inu may be on the verge of a significant breakout. Here are some reasons why SHIB could be the ‘sleeping giant’ of this bull market.

1. Cup-and-Handle Pattern Signals a Bullish Outlook 

One of the most compelling indicators for a potential SHIB rally is the formation of a classic cup-and-handle pattern on its daily chart. This technical pattern is known for its ability to predict substantial upward movement, resembling the shape of a teacup followed by a smaller handle.

As of early November, Shiba Inu finds itself in the handle phase, nearing a breakout above the neckline resistance at $0.00002032. Should SHIB break through this level, the projected price target could reach $0.00003545—approximately a 90% increase from current levels. This price point aligns with SHIB’s resistance zone from March 2024, which peaked around $0.00004567. A breakout here could propel SHIB into early 2025 with significant momentum.

2. Capital Rotation: From DOGE to SHIB

While Shiba Inu has seen steady gains, it has lagged behind Dogecoin, buoyed by Elon Musk’s frequent promotion of the meme coin, particularly through his Department of Government Efficiency (DOGE) project. However, the situation may be shifting. Dogecoin’s daily relative strength index (RSI) has surpassed 70, signaling overbought conditions that often precede price corrections.

In contrast, SHIB’s RSI sits at a balanced 58.42, indicating more potential for upward movement. The SHIB/DOGE pair has also shown oversold conditions, suggesting that SHIB might be undervalued compared to DOGE. Should Dogecoin enter a cooling phase and investors seek new opportunities, SHIB could become the recipient of this capital shift, driving its price higher.

Read Also: Top 10 Memecoins with Long Term Outlook

3. SHIB’s History of Strong Rebounds 

Shiba Inu has a track record of bouncing back strongly under similar technical setups. Past oversold conditions have led to price rallies ranging from 30% to 150%. The current setup—marked by an oversold RSI and key support levels—suggests that another significant rebound may be in the works.

Should a rally unfold, SHIB’s first resistance level could be its 50-day exponential moving average (EMA), currently positioned around 0.0001276 DOGE. A move to this level would represent a gain of more than 30% from its current price, supporting the bullish outlook indicated by the cup-and-handle formation.

Is SHIB Price Ready for a 90% Surge by Early 2025?

The technical indicators and chart patterns are not the only signs pointing to potential growth for SHIB. A confirmed breakout from its current setup could trigger a significant rally, with a 90% price increase on the table. Historical data suggests that similar conditions have led to strong performances for SHIB in the past, and the current landscape appears ripe for a repeat.

Strategic Developments and SHIB’s Future 

Beyond the charts, Shiba Inu is positioning itself for strategic growth through initiatives like the proposed Strategic Hub for Innovation and Blockchain (S.H.I.B.). This project aims to create a U.S.-based center for blockchain technology and sustainable development, aligning with potential policy shifts under a second Trump administration. The previous Trump administration focused on deregulation and fostering public-private partnerships, a favorable environment for blockchain expansion.

Can SHIB Reach the $1 Mark?

The $1 price milestone has been a topic of considerable debate within the Shiba Inu community. Given the current circulating supply of 589 trillion tokens, reaching $1 would require a market capitalization of $589 trillion—an implausible figure given current global financial limits. However, ongoing token burns aimed at reducing the circulating supply could improve the token’s long-term growth prospects.

The Rise of Shiba Galaxy: A Fresh Contender

While SHIB looks poised for a potential breakout, new meme coins are emerging with unique offerings. One standout is Shiba Galaxy ($SHIBG), an L2 blockchain meme coin designed to bridge the gap between traditional cryptocurrencies and meme projects. Shiba Galaxy features instantaneous bridging between Ethereum and its native chain, staking capabilities, and a comprehensive ecosystem, setting it apart in the crowded meme coin market.

Currently in its pre-sale phase at $0.105 per token and boasting a modest $30 million market cap, SHIBG could be a strategic addition for investors looking to diversify before the next bull run.

Final Thoughts: The Next Big Move for Meme Coins 

Meme coins are here to stay, and Shiba Inu has proven it has the community, technical indicators, and strategic vision to continue being a significant player. However, the space is rapidly evolving, with projects like Shiba Galaxy bringing fresh competition and innovation. Whether SHIB makes its much-anticipated breakout or a newcomer takes center stage, the coming months are sure to be full of opportunities for crypto enthusiasts and investors alike.