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Can Shiba Inu Follow Dogecoin’s Lead and Reach a New Yearly High?

Last Updated March 28, 2024 3:03 PM
Valdrin Tahiri
Last Updated March 28, 2024 3:03 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • Shiba Inu’s price has fallen since reaching its yearly high on March 5.
  • SHIB’s burn rate has increased significantly in the past 24 hours.
  • Can SHIB resume its previous uptrend and reach a new yearly high?

While Shiba Inu‘s price has decreased since its yearly high on March 5, the DOGE price retraced its entire drop and reached a new yearly high of $0.22 on March 28.

Memecoins often mirror each other’s movement, especially DOGE and SHIB. Therefore, the question is whether SHIB will also begin an upward movement that takes it to a new yearly high.

Shiba Inu Falls After Yearly High

The weekly time frame chart shows that SHIB increased rapidly after breaking out from a long-term descending resistance trend line in February. The trend line had existed for 560 days before the breakout.

The upward movement led to a high of $0.000045 on March 5, reaching the 0.5 Fib retracement resistance level (red circle) of the entire drop since the all-time high.

Shiba Inu Long-Term Breakout
SHIB/USD Weekly Chart | Credit: TradingView

SHIB has fallen since and currently trades at $0.000032. The weekly RSI and MACD are both trending upward, but the RSI is in overbought territory, potentially facilitating the drop since the all-time high.

There were a few positive announcements this week. The SHIB burn rate in the past 24 hours has increased by 1,200%.  Also, the 18th edition  of the memecoin’s magazine dropped yesterday. The publication highlighted the launch of Shiba Inu’s NFT venture, Lumibots , and the DAMN token, available in WoofSwap. 

SHIB Price Prediction: Is the Correction Over?

The daily time frame chart suggests the SHIB correction ended on March 20, marking the end of wave four in a five-wave upward movement (black).

Afterwards, SHIB moved above the 0.5 Fibonacci retracement support level, confirming the previous drop was just a deviation (green circle).

The RSI and MACD both support this conclusion. The RSI bounced at 50 and is trending upward while the MACD has nearly made a bullish cross (green icons).

Is the SHIB Correction Over?
SHIB/USD Daily Chart | Credit: TradingView

If wave five extends to 0.618 times the length of waves one and three combined, the SHIB price can increase by another 120%, reaching a target of $0.000072.

This bullish prediction will be invalid if SHIB falls below the March 20 low of $0.000023. This would mean the SHIB price is still correcting in wave four.

SHIB Can Follow in Dogecoin’s Footsteps

The SHIB price bounced on March 20, reclaiming a previously lost support level. This signifies that the correction is complete, and the SHIB price is expected to increase toward the next target, completing wave five in the process.

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