Shiba Inu (SHIB) price was at its lowest level against its biggest rival, Dogecoin, in November 2022. Three months later, the roles changed. SHIB has now overtaken DOGE with its rise. So, will it spend February on a rise? Here are the comments about the second biggest meme coin…
SHIB price up 100 percent on DOGE pair
On February 4, 2023, the SHIB/DOGE pair reached 0.00001638 DOGE, up almost 100 percent three months after falling to its lowest level of 0.00000993 DOGE. The sharp recovery came as investors’ focus shifted to the upcoming launch of Shibarium, a Shiba Inu-powered layer-2 blockchain that was announced on January 16 and built on the Ethereum mainnet. As we reported on Kriptokoin.com, the recovery in SHIB price gained momentum amid news that Shibarium will go live on February 14.
By comparison, the latest developments for Dogecoin looked pale, with Elon Musk suspending a DOGE bot for violating Twitter rules. However, both meme coins have had a great start to 2023. SHIB/USD is up almost 85% and DOGE/USD is up 36% since the start of the year.
https://twitter.com/cb_doge/status/1620659209175023618
Will it drop in February?
According to several technical indicators, the SHIB/DOGE recovery trend will continue in the coming weeks. Based on historical cycles, the pair could climb to 0.00002181 by March 2023, which would represent a 40 percent gain from current price levels as shown in the chart below. But while SHIB appears to be in a better position to outperform DOGE, both meme coins are facing headwinds against the dollar in February, according to analyst Yashu Gola.
For example, Dogecoin risks a minor correction against the dollar in the coming days as it has drawn a potential rising wedge pattern. Rising wedges are bearish divergence patterns that show the price increasing within two converging ascending trendlines.
What are the important levels?
Applying the scenario to the daily DOGE price chart brings its downside target to $0.0850, a 10 percent decrease from current price levels. Meanwhile, SHIB/USD is also looking extremely strained on its daily chart, based on a relative strength index of 81. Normally, over 70 is considered “overbought”. Additionally, it is currently facing a strong resistance zone at around $0.00001517, where a pullback is likely.
If that’s the case, the SHIB price could drop 13 percent to 20 percent from current price levels in February to $0.00001300–0.000013000, its most volatile area in recent months. Conversely, a break above the $0.00001517 resistance will push SHIB for a run towards the upside target of the dominant bullish pennant pattern at $0.00001651.
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