Can Shiba Inu Price Flip Dogecoin if Elon Musk Leaves DOGE Amid Senate Probe?

Shiba Inu price may soon outpace Dogecoin to emerge as the largest meme coin if the ongoing probe by the US Senate against Elon Musk and his rumoured departure from DOGE fuel a downtrend for Dogecoin price. The two largest meme coins have been in a contentious battle for dominance for years, and the SHIB community is anxious about whether these latest developments might be the turning point.

Shiba Inu price has registered an impressive 9% gain in the last seven days. SHIB value today stands at $0.0000137 with a 2.44% decline in 24 hours.

Shiba Inu Price Eyes Dogecoin Position Amid Senate Probe on Musk

Shiba Inu price may rally soon if investors shift their attention away from Dogecoin due to the ongoing uncertainty around Musk’s role at DOGE, as the Senate rolled out investigations against the Tesla CEO.

The US Senate stated that despite Musk having a critical role within the federal government, he maintains his position at his companies, including Tesla and SpaceX. This was despite Musk’s role at DOGE to oversight federal agencies, including the ones that regulate his companies. The report read,

“The truth is that the breathtaking scope and scale of benefits Mr.Musk is gaining from his present position may never be known, and that is by design.”

As Coingape previously reported, Musk plans to exit DOGE before the end of the year, a move bound to impact Dogecoin price. This Senate probe might be the breaking point, hence sparking optimism among Shiba Inu community members that the price may surge soon.

Can Shiba Inu Flip Dogecoin?

To flip Dogecoin, the Shiba Inu price will have to surge significantly, considering that SHIB’s current market cap stands at $8 billion, which is notably lower than Dogecoin’s $26 billion. This means that SHIB’s market cap has to increase by over 3 times to overtake Dogecoin.

However, this is not impossible, as it has happened in the past. In 2021, Shiba Inu briefly overtook Dogecoin by market cap ranking after Vitalik Buterin burned 410 trillion SHIB tokens. Hence, the key to Shiba Inu unseating Dogecoin lies in a high burn rate and intense demand from retail investors.

SHIB Technical Analysis

SHIB trades within an ascending parallel channel on the daily price chart, which is one of the main signs of a bullish Shiba Inu price prediction. However, the uptrend that has been happening within this channel is flashing signs of weakening after dropping below the mid-line as it approaches support at the lower trendline.

The RSI confirms the fears of a bearish breakout from this channel after plunging to 47 to show that a bearish momentum is in play. If Shiba Inu breaks the lower trendline of the channel and loses support at $0.000013, the downtrend might accelerate towards $0.00001045. This bearish outlook will be invalidated if the Shiba Inu price recovers to $0.000014.

Considering the ongoing probe by the US Senate against Tesla CEO Elon Musk, Dogecoin eyes a downtrend, which may place the Shiba Inu price in a position to rally and possibly emerge as the largest altcoin. However, SHIB needs to overcome the bearish trends that are prevalent on the four-hour chart to kickstart a strong uptrend.

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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.