Dogecoin’s (DOGE) ascent to become the top meme cryptocurrency was inspired by the token’s meteoric rise during the 2021 bull market, and now there are chances that Shiba Inu (SHIB) might follow suit.

A comparison between SHIB’s current cycle and DOGE’s historical price action suggests that the former might be primed for a major breakout. The possibility of SHIB replicating the top meme coin lies in the fact that Shiba Inu recently broke above its 50-week moving average (MA50) after several months of consolidation, as crypto trading expert Trading Shot observed in a post on TradingView on September 26.

The token is flirting with the upper boundary of a seven-month downward channel, a critical resistance point, while finding support from its long-term 200-week moving average.

Additionally, the expert identified this downward channel as a ‘bull flag,’ a pattern known for preceding aggressive rallies. Like Dogecoin’s performance in 2018-2021, the technical formation may set SHIB up for a significant price surge.

When comparing the two meme coins, the analyst reviewed DOGE’s movement between 2018 and 2021, where the period exhibits striking similarities to SHIB. A review of 2018 price movements shows that Dogecoin’s top led to a correction, forming a downward channel and a bullish one-week golden cross formation where the 50-week moving average crossed above the 200-week moving average. This formation was central to triggering Dogecoin’s explosive rally.

On the other hand, Shiba Inu appears to be replicating a similar formation. The token also entered a downward channel after hitting its all-time high in October 2021. Notably, SHIB has recently formed a one-week golden cross. Therefore, if all market sentiments align, SHIB could be bracing for a parabolic rally in the coming months.

Besides technical indicators and general market sentiment, DOGE’s rally was also fueled by support from prominent celebrities. In particular, Tesla CEO Elon Musk played a key role in driving the rise, with notable buying pressure occurring whenever he mentioned the meme coin in his X posts.

However, Musk’s recent mentions of Dogecoin appear to have less impact as the token mainly trades in tandem with the overall market. As for SHIB, it will be interesting to see whether the token will rely solely on technical indicators and overall market sentiment.

SHIB’s next record high

Moreover, the Fibonacci retracement supports this bullish outlook. As observed by the expert, SHIB remains below its 0.5 Fibonacci retracement level, indicating that it is still undervalued. When looking at specific prices, if the current underlying bullish sentiments are sustainable, they could push the token to the 1.5 Fibonacci extension, which sits at $0.00035, according to the analysts.

Meanwhile, another prominent crypto analyst, Alan Santana, opines that SHIB is destined for higher levels in the coming months. He observed that after a notable downtrend from late 2022 through mid-2023, SHIB is stabilizing its price, signaling possible upcoming gains.

He expects the meme coin to record possible growth of 101%, 205%, 654%, and a stunning 1,111%. To this end, the analyst stated that investors should anticipate a new record high by the fourth quarter of 2024.

Aside from technical analysis, other underlying fundamentals within the Shiba Inu community support a price rally, with news of a potential stablecoin on the network ranking high. As reported by Finbold, SHIB’s marketing lead, ‘Lucie,’ revealed that a stablecoin for the Shibarium ecosystem might be coming soon.

While the launch date has yet to be revealed, SHIB recorded a significant capital inflow in reaction to the news, with its value hitting $1 billion within 24 hours. Indeed, such a move would enhance SHIB’s liquidity, driving a potential price rally.

SHIB price analysis

As of press time, Shiba Inu was trading at $0.00002125, reflecting gains of almost 30% in the past 24 hours. On the weekly chart, SHIB is up 50%.

Currently, SHIB is building bullish momentum in both the short and long-term, as the meme coin is trading above its 50-day and 200-day simple moving averages (SMAs). However, caution is advised when looking at SHIB’s interaction with the 14-day relative strength index (RSI), which is at 80.70, signaling an overbought condition and possible near-term price pullback.