What will happen to the prices of DOGE and SHIB?
Recently, there has been a severe decline in the cryptocurrency market, especially affecting Shiba Inu and Dogecoin holders. As Bitcoin hovers between $56,000 and $60,000, a wave of bearish sentiment sweeps across the market, causing a significant slowdown in many meme-based cryptocurrencies such as Shiba Inu and Dogecoin.
Amid this selling pressure, on-chain activity in the meme coin market has also declined, with most indicators currently pointing to a reversal in the prices of SHIB and DOGE. Nevertheless, market experts remain optimistic and expect a strong comeback for both DOGE and SHIB, supported by solid support levels indicating a promising recovery.
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Whale Interest Declines For SHIB And DOGE
Since January 22, the collective value of cryptocurrencies has been steadily climbing, hitting a new peak for the year by surpassing the $2.7 trillion threshold.
Despite this significant achievement, there has been a slight downturn in prices as of late, and the market’s momentum has declined. April saw massive selling pressure and a correction in crypto prices, plunging them below their key psychological marks.
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Most notably, Bitcoin has struggled to break above $60,000 and continues to face resistance from sellers at all levels. BTC price recently fell to the $56,000 level. However, it has since recovered.
As a result, both buyers and sellers take advantage of small rallies to leverage their positions and maximize profits as momentum stalls. According to data from Coinglass, the crypto market experienced a total of more than $112 million in liquidations, with donations from bearish traders totaling $70 million.
As a result, the market for meme cryptocurrencies such as Dogecoin and Shiba Inu is witnessing volatility. Critical on-chain metrics are shifting unfavorably, suggesting increasing selling pressure on these widely-known meme tokens.
According to data from IntoTheBlock, there has been a notable decline in large transactions involving Dogecoin, plummeting by over 60% from a peak of $3.5 billion to $1.2 billion, indicating reduced interest from significant investors. This decline might result in decreased volatility and lower the chances of continued bullish momentum.
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DOGE and SHIB
On the other hand, the SHIB price witnessed a drop in whale interest too, as the metric dropped from $138 million to $37 million over the last 48 hours. Additionally, volatility for Shiba Inu declined from 88% to 83% in recent days, which might challenge buyers’ patience around the immediate Fib channel.
Dogecoin (DOGE) Price Analysis
The failure of buyers to uphold Dogecoin’s price above the $0.14 threshold has strengthened sellers, escalating their efforts to lower the price.
In recent hours, DOGE price rebounded above the low of $0.12 and aimed to breach $0.14. Presently, the price is dipping below the EMA20 trend line, reflecting tumbling buyer confidence.
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At the time of this writing, DOGE is trading at $0.13, marking an increase of 1.6% compared to yesterday’s rate.
Technical signals, including the bearish crossover of moving averages and the Relative Strength Index (RSI) lingering below the midpoint, indicate that sellers currently hold the upper hand.
Sellers are likely targeting a decline to the $0.12 mark and potentially even further to $0.09, where a surge in buyer activity may be anticipated.
A pivotal signal for a potential reversal in momentum would be Dogecoin’s ability to sustainably remain above the 20-day EMA. Achieving this could set the stage for a retest of the resistance zone spanning from $0.15 to $0.2.
Shiba Inu (SHIB) Price Analysis
Shiba Inu encountered resistance at the 20-day EMA, indicating that sellers are applying pressure at these elevated price levels. Nonetheless, bullish sentiment remains firm during declines.
The $0.00001855 level is anticipated to be vigorously defended by buyers, as a breach below this threshold could potentially trigger a significant downturn in the meme coin’s value, possibly driving it towards $0.000012.
In the event of a price rebound from its current position, a move towards the 20-day EMA is probable. However, if resistance is encountered at this EMA and the price reverses course, the support at $0.00001855 may come under threat once again.
Conversely, if the price successfully breaches the 20-day EMA, it would signal a weakening of bearish influence. In such a scenario, the SHIB price may gear up for a breakout above the ascending resistance line at $0.000028.
