The cryptocurrency market has seen a recent period of consolidation after a bullish upswing. While major tokens settle around their gains, memecoins Dogecoin (DOGE) and Shiba Inu (SHIB) are defying the trend with some independent price action. But will their current momentum hold, or are they headed for another dip?
Dogecoin (DOGE): Will the Rally Resume?
DOGE bulls were initially excited after the price bounced back from a crucial support level of $0.10. However, the token’s failure to breach the resistance at $0.127 has cast doubt on the sustainability of the uptrend. Technical indicators like the RSI and DMI are flashing bearish signals, suggesting a potential downward correction.
Analysts point to a similar consolidation pattern witnessed in June, where DOGE saw a 20% pullback after failing to break above $0.12. The current consolidation could follow suit, potentially dragging the price back down to the $0.10 support zone.
Shiba Inu (SHIB): Headed for a 40% Drop?
SHIB’s price action paints a similar picture. The token’s inability to establish higher highs and lows indicates a strong bearish influence. Experts predict a potential 40% pullback within the next week or so, with the lower support level at $0.0001 acting as a potential target.
Technical analysis reveals SHIB trading within a descending channel, highlighting the dominance of bears. While there’s a slight indication of a decline in selling pressure based on the MACD indicator, the overall bearish divergence remains concerning.
Can the Bulls Stage a Comeback?
While both DOGE and SHIB face downward pressure, a complete reversal isn’t entirely out of the cards. A surge in buying activity could propel the prices upwards, although the intensity of such a rebound might be limited.
For DOGE, successfully holding the $0.10 support level is crucial. SHIB, on the other hand, needs to find support at the average bands of its descending channel (around $0.0001630) to potentially alter its bearish trajectory.
The next few days will be crucial for DOGE and SHIB. While both memecoins are experiencing some independent price movement, the overall market sentiment and technical indicators suggest a potential decline. However, the possibility of a bullish resurgence remains, albeit with some limitations. Investors in these memecoins should buckle up for a potentially volatile ride.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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