Will SHIB ever overtake DOGE? Or is it just a meme that will soon turn into a dead coin? Comparing SHIB and DOGE price movements to analyze the future outlook of the token. Read more!
Shiba Inu is a decentralized meme token that started with a total supply of 1 quadrillion, for real! However, just after its launch, 50% of the tokens were locked in Uniswap whereas the other 50% were gifted to Vitalik Buterin, the (co)founder of Ethereum. Buterin proceeded to burn most of the tokens he received and donated the rest to India to deal with the coronavirus situation.
So, Shiba Inu may be a meme token, these actions and its community strength are no memes at all. Since the token is called “the Dogecoin killer,” we are going to compare its progress so far with that of the Dogecoin and analyze its future outlook.
Dogecoin (DOGE)
In the crypto industry, Dogecoin (DOGE) became the first real decentralized meme token. It seems like everybody in the world now knows Doge, whether via Elon Musk’s endless tweets or the strong support that it got from its community.
Dogecoin was created as a joke by two software engineers, named Billy Markus and James Parker back in 2013.
The face of a Shiba Inu dog is, since its birth, the logo of Dogecoin. DOGE was launched back in December 2013 and developed its strong online presence quickly.
At the time of writing, Doge is ranked as the 10th largest cryptocurrency, with a market cap of $28,305,948,980. Not that bad for a meme token, right?
Dogecoin (DOGE) in a High Time Frame
If you look at the multi-year chart of DOGE/USD, you see multiple accumulation ranges and rallies that can be compared.
As we can see, just after a few weeks of its launch back in December 2013, DOGE experienced a little hype pump.
After that, the price came down, as did the hype, and an accumulation range was formed. That range lasted almost three years. When DOGE left that accumulation phase, it went up quickly. Measured from the top of the accumulation range to the top in January 2018, DOGE went about 47 times high.
After that macro top, the price came down, same as the hype again. Another accumulation range was formed, and again the length of that range was three years (surprise surprise!).
After Elon Musk started tweeting about Dogecoin again, the coin left the accumulation range again and saw a massive explosion in its price. Measured from the top of the accumulation range to the top in May, Dogecoin went up 111 times within 4.5 months!
Measured from the middle of the first accumulation range till today's price, DOGE is still up about 1,000 times.
The question is if Dogecoin is going into its accumulation zone right now and people should focus on other meme tokens in the meantime? Let’s compare the coin to its logo’s face: Shiba Inu.
Shiba Inu (SHIB)
Shiba Inu (SHIB) was launched back in August 2020 with a mission to be “the Dogecoin killer”. Until today, that hasn’t happened. But can it overtake the coin in the future? Can we even begin to compare the two? Let’s find out!
At the time of writing, Shib is marked as the 47th biggest cryptocurrency (update: ranks 41 now) with a market cap of $3,329,547,895. So, to overtake the Dogecoin from here, it needs to see a huge pump.
This trader, @btc_charlie, was smart enough to believe in the hype. He bought some SHIB tokens right after it launched. Why? Hype moves markets and he wanted to be invested in the coin before the masses got into it.
So, Shiba Inu also had a crazy rise in valuation in a short period of time. However, if you look at DOGE, even after the initial rise, it can be really rewarding to just dollar cost average during an accumulation range afterward.
Let’s check if Shiba Inu is inside an accumulation range right now.
Shiba Inu in a Daily Chart
On this chart, the first accumulation range from August 2020 till April 2021 isn’t visible.
The launch of Siba Inu on Binance marked the top after the insane rise. Then, the price came down by almost 90% and formed a range.
This range has more signs of accumulation than distribution right now. The low volume indicates that there are only a few people who want to sell their SHIB tokens. Right after hitting the lows, you can see a good buying volume coming in. A few days, late in September, Coinbase listed Shib, and again a strong buying volume gets visible. Afterward, another huge drop in the price could be observed. As of now, almost all the damage done by that has been fixed, as the price is approaching the upper band of the range again.
Given the state of the market right now, and how fast everything is developing, it would be rather strange to see another three-year accumulation range. If Shiba Inu manages to break above the range and possibly retest it, you may see another big impulsive move to the upside again.
Do you think it is possible for Shiba Inu to reach the former highs again?
Things to Consider
Although only time can tell if Shiba Inu will reward its hodl-ers as Dogecoin did, you should keep an eye on the market to observe the potential rise in its price.
One should note that when DOGE had the same market cap in January 2021, as Shiba Inu has right now, its price jumped about 30 times.
So, if Shiba Inu indeed wants to overtake Dogecoin, a 10-time price jump is needed right now. If it follows the same pattern as Dogecoin (DOGE), we can easily see it going up 30 times higher than its current price.
It is necessary to always do your own research. These numbers are estimations made by the writer considering previous charts and price movements, therefore, highly speculative.
