The cryptocurrency markets have been experiencing a significant sell-off lately, starting with Bitcoin reaching highs of $108,000 a few days ago. Interestingly, meme coins like Dogecoin and Shiba Inu began to show signs of a downturn even before the BTC crash, indicating that market participants had already started moving away from meme coins and into other tokens. This shift in focus has put pressure on the prices of Dogecoin and Shiba Inu, as they struggle to rise above their respective resistance levels amidst a broader market rebound.
Dogecoin (DOGE) Price Analysis
Following a sharp decline earlier in the week, Dogecoin saw its price plummet from highs around $0.32 to lows near $0.26. While the bulls managed to push the price back above $0.31, the rally seems to be facing bearish pressure. The weekly chart for DOGE suggests that the price is still under the influence of bears, with a potential drop below $0.2 looming if support at $0.33 is not maintained. The ADX indicator is currently bearish, signaling a possible downward trend, although a close above $0.35 could change the narrative.
Shiba Inu (SHIB) Price Analysis
On the other hand, Shiba Inu has broken below a rising wedge pattern, leading to a sharp decline of over 30%. While a rebound may be on the horizon, technical indicators paint a different picture. The SHIB price could be at risk of a more significant correction, potentially falling below $0.00002 in the near future. The MACD indicator shows a decrease in buying volume, signaling a potential bearish crossover, while the Ichimoku cloud is turning bullish, hinting at a possible end to the bearish trend. A bullish crossover between the base and conversion lines could invalidate the bearish outlook for SHIB.
In conclusion, both Dogecoin and Shiba Inu are facing challenges in their price movements, with bearish pressures impacting their trajectories. While DOGE struggles to break free from bearish influence, SHIB faces the risk of a deeper correction. Traders and investors will need to closely monitor these tokens in the coming days for potential shifts in price dynamics.