Popular meme-inspired cryptocurrencies Dogecoin and Shiba Inu have shown signs of bottoming out recently, leading analysts to predict massive rallies by year’s end. However, analysts caution these gains may be short-lived.
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Shiba Inu Trendline Breakout
Crypto trader Captain Faibik tweeted that Shiba Inu appears to have bottomed out already, with a major trendline breakout now confirmed. He predicts this could fuel a 2x bullish rally for Shiba Inu by mid-December.
In a follow-up tweet, Faibik notes Shiba Inu broke out of a major trendline and is currently undergoing a retest. If successful, he expects a rally up to 2x from current levels around $0.000009 by December.
The last major Shiba Inu breakout occurred in August with the launch of layer 2 network Shibarium. While prices initially erased a zero, the rally quickly reversed as the bear market continued.
Shiba Inu’s resilience during ongoing bearish conditions has made it a top trader’s choice. Shibarium’s launch increased utility with nearly 4 million transactions in just 6 months.
Many analysts now believe Shiba Inu looks ready for a trend reversal after bottoming out. A retest of resistance around $0.0000084 could spark a 200% surge.
Dogecoin Breaks Year-Long Channel
According to analyst Rekt Capital, Dogecoin has also shown bullish signals after breaking its year-long channel to the upside. This breakout comes after rallying 50% from channel lows.
Rekt Capital expects the upside move to continue as Dogecoin enjoys successful retests of the channel top as support. Breakouts from major technical patterns often precede new higher timeframe trends.
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Sustainability Remains Uncertain
While the current technical setup for both Shiba Inu and Dogecoin suggests the potential for strong rallies by December, traders should be cautious about getting overzealous. The sustainability of meme-driven rallies is often fleeting without continual hype and buying pressure. Unless fundamentals drastically improve, any gains could quickly evaporate. The catch is that while major breakouts look possible on the charts in the near-term, a shift in trader sentiment could rapidly reverse those gains as has happened frequently after previous meme coin pumps. Traders should factor this risk into any positions rather than expecting a prolonged trend change.
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