Doge Coin started life in December 2013, as a joke meme token. It had a very quiet life until January 2021, when it started to catch up with the rest of the crypto market, which was surging. Shiba Inu coin started life in August 2020, as a joke response to the Dogecoin. Sometimes it is referred to as the Dogecoin killer.
Not many brokers were listing this new coin, but that changed when it started to surge at the beginning of May this year. However, after the short-lived surge, which lasted for about two weeks, SHIB/USD had reversed down by the middle of May, after forming an upside-down pin candlestick on the weekly chart – this is a bearish reversing signal after the bullish move.
So, while they are enemy cryptocurrencies on paper, they have been reacting similarly. This similarity increased in the following months because the surge and the subsequent reversal in May happened throughout the whole crypto market. While the lows in many cryptocurrencies have been stable, or even getting higher in some cases, Dogecoin and Shiba Inu have been sliding lower since June, as shown on their respective daily charts.
Doge coin getting squeezed between the 50 SMA at the top and the 200 SMA at the bottom
We can see that a triangle is forming on both charts. In Dogecoin, moving averages are forming a triangle, with the 20 SMA (gray) and the 50 SMA (yellow) acting as resistance at the top, pushing the price down, while the 200 SMA (purple) is acting as support.
The triangle is getting very narrow for Shiba Inu
In Shiba Inu, the 20 and 50 SMAs are acting as resistance at the top, pushing this cryptocurrency down, while the bottom is provided by a trendline. These triangles point to a breakout in either direction soon, although the price action seems bearish for both, which is another similarity between the two.
Besides that, while most of the crypto market has been making some decent gains in the last three weeks, Dogecoin and Shiba Inu have largely missed out on this opportunity. So, that’s another similarity that also points down. Although, if the sentiment in the crypto market keeps improving, then both SHIB/USD and DOGE/USD might also turn bullish. But for now, they look bearish, and the price action looks almost identical for both.