Recently, the price of BTC encountered resistance at $28.5K, taking a dip towards the crucial $28K mark. Likewise, the meme coin industry is experiencing challenges. Top meme coins, Dogecoin and Shiba Inu are currently experiencing a slight decline near their resistance points as sellers find opportunities in price spikes.
Sellers are preparing for a downward correction
Over the past 24 hours, Dogecoin and Shiba Inu have shown strong performance. As traders turn their attention to meme coins after Bitcoin surged past $28,000, the market’s trading volume has increased significantly. The buying pressure was short-lived, however, as Coinglass data shows that Dogecoin saw long positions worth $400K liquidated, while SHIB experienced a long liquidation of $35K. This implies that investors are benefiting from the gains from the recent upturn.
Dogecoin (DOGE) price analysis
Over the past few hours, Dogecoin’s price movement has turned bearish as it failed to break above the USD 0.065 level. As a result, sellers opened short positions, and DOGE price is now in a downward correction and hovering around the EMA20 trendline. At the time of writing, DOGE price is trading at $0.0626, up over 1.09% in the past 24 hours.
The 20-day EMA is at $0.062 and appears to be leveling off, while the RSI has fallen and is hovering just above the midpoint, indicating a balance between buyers and sellers. A strong recovery from buyers above the 20-day EMA could mark the start of renewed momentum, with DOGE price potentially targeting the immediate resistance at $0.065 and then targeting $0.07.
Conversely, to counter this upward trajectory, bears would need to quickly pull the price below $0.059. If they succeed, the meme coin could fall to the next major support level at $0.055.
Shiba Inu (SHIB) price analysis
SHIB price witnessed robust buying today as the price reached a high of $0.0000076. However, bears soon moved in to topple the meme coin. As a result, SHIB price fell below the 23.6% Fib channel and reached the bottom of the EMA100, triggering a small recovery. This suggests that buyers are taking advantage of price drops. Currently, SHIB price is trading at $0.00000742, up over 0.55% from yesterday’s price.
The extended wicks on the candlesticks indicate bearish selling around the 38.2% Fibonacci retracement mark of $0.0000076. However, on the bullish side, the price remains above the immediate support level.
For a further upward trajectory, buyers need to send the price past the crucial $0.0000078 price level, paving the way for a possible retest of the resistance at $0.0000085.
The RSI level has fallen from the overbought area and is currently above the midline at 50, indicating a recovery in SHIB price. If SHIB’s price falls and fails to recover from $0.0000071, it will trigger an intense bearish rally, hitting the ground at $0.0000064.