Shiba Inu (SHIB) and Dogecoin (DOGE), two widely followed meme tokens, technical analysis suggests a possible price movement. Per analyst Charting Guy, both coins show similar chart patterns, hinting at a potential rally.
In a post on X, he noted the resemblance in the price action of SHIB and DOGE. Moreover, he highlighted key levels and trends that could lead to an upward breakout for both tokens.
What you'll learn 👉
Fibonacci Levels Indicate Key Support and Resistance
According to Charting Guy’s analysis of Shiba Inu’s weekly chart, SHIB is currently holding at the 0.236 Fibonacci retracement level, around $0.000013089, after facing resistance at the “Golden Pocket” between the 0.618 and 0.786 levels.
The Golden Pocket has historically acted as a strong resistance zone, causing the recent rejection of SHIB’s upward movement. Besides, if the 0.236 level holds, SHIB may target the next support area around $0.000016434, close to the 0.382 Fibonacci level.
Fibonacci retracement levels are used to determine likely support and resistance levels. SHIB’s trajectory will be determined by the levels of 0.236 and 0.382, that is if it breaks out of its consolidation phase.
This Key Pattern Could Trigger Breakout
A descending triangle pattern that has been forming on the chart for a while suggests a possible breakout. These patterns usually signify an impending collapse or an imminent breakout; in this instance, an upward breakout is anticipated.
Charting Guy’s bullish forecast aligns with this pattern, anticipating a breakout that could lead to an explosive price surge for SHIB.
Additionally, if SHIB breaks above the triangle with enough volume, it could confirm the beginning of the predicted wave 3. Besides, it is known for being the most key price move in Elliott Wave Theory.
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Elliott Wave Theory Suggests SHIB Could See New Highs
In his tweet, Charting Guy refers to the first two waves of Elliott Wave Theory, with SHIB now in the loading phase for wave 3. Moreover, wave 3 typically brings about the largest price movement, often exceeding previous highs.
This theory is often used to predict future market trends based on past price movements, and in this case, it suggests SHIB could push past its all-time high (ATH).
Momentum Indicators Show Room for Growth
Charting Guy’s analysis also points to momentum indicators such as the Stochastic RSI and the regular RSI. Both indicators suggest that SHIB is not overbought, leaving room for further upward movement.
Besides, the Stochastic RSI, in particular, indicates that SHIB is in an oversold region, which could signal a buying opportunity.
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