On April 4, the price of SHIB hit $0.00001159 a day after recovering from a local low of $0.00001049 – up 10.5%. However, the meme-coin is still underperforming its rivals, including Dogecoin (DOGE), which has gained more than 30% in the same period.
On the year-to-date timeframe, SHIB and DOGE returns are almost identical, around 38%.
The price of SHIB began to rise after Twitter, owned by self-proclaimed Dogecoin supporter Elon Musk, replaced its iconic blue bird with Dogecoin’s iconic dog. SHIB/USD also rose due to Musk’s mention of Dogecoin on Twitter. Though, in October 2021, Musk clarified that he did not support Shiba Inu.
From a technical point of view, SHIB has consolidated higher inside a bearish flag pattern, which may limit its ability to reflect a 30% price increase like Dogecoin.
A bearish flag pattern is a bearish continuation pattern that forms when prices trend higher for a short time inside an ascending parallel channel after experiencing sharp declines. It settles after the price breaks below the lower trendline on high volume and falls as much as the height of the previous downtrend (flagpole).
Since April 4, SHIB has been testing the flag’s upper trendline (near $0.00001160) for a potential pullback to the lower trendline (near $0.00001050).
A further close below the lower trendline could trigger a bearish flag breakdown scenario, with its pullback target near $0.00000883 in April, down more than 20% from current prices.
In contrast, a breakout above the flag’s upper trendline risks invalidating the bearish setup. If so, SHIB’s upside target seems to lie at the resistance of the long-term descending trendline — around $0.00001400 in April, up 25% from current prices.
(Reference: Cointelegraph)