The last few days have been pretty up and down for cryptocurrency, especially for people who invest in Shiba Inu and Dogecoin. Bitcoin’s price suddenly dropped back to around $50,000, making a lot of people worried about the whole market.
This caused meme coins like Shiba Inu and Dogecoin to lose some of their momentum. But experts think that Dogecoin and Shiba Inu could bounce back soon and start going up again.
Cryptocurrency Market Hits $2 Trillion Milestone, Faces Recent Downturn
Since January 22, the cryptocurrency market cap has been steadily rising, reaching a significant milestone of over $2 trillion, marking a new yearly high. Despite this impressive accomplishment, prices have experienced a slight decline in the past few days.
Bitcoin’s price notably surged above $53,000 during this period. However, it struggled to maintain its upward momentum, causing concern among investors. This led to increased selling activity, resulting in total liquidations surpassing $300 million within the last 24 hours.
Consequently, the price of Bitcoin retreated to around $50,500. Despite this setback, bullish sentiment emerged, preventing further declines and indicating potential for a rebound in the near future.
Dogecoin Struggles as Bears Gain Momentum
Attempts by the bears to pull Dogecoin back into a symmetrical triangle pattern have gone unchallenged by the bulls, leading to further weakening of DOGE’s price and reducing the chances of a bullish recovery. Currently trading at $0.0835, DOGE has seen a decline of over 1% compared to yesterday’s rate.
The 20-day Exponential Moving Average (EMA), positioned at $0.085, is gradually trending downwards, mirroring the downward trajectory of the Relative Strength Index (RSI), which has dropped below the midline to 41, indicating bearish dominance.
Any potential bullish signals may face hurdles if the price remains below the moving averages, suggesting a growing bearish sentiment. Even minor relief rallies could encounter selling pressure, particularly if the price drops below the ascending downtrend line at $0.08, potentially triggering a wave of further selling.
However, a reversal of the current trend by the bulls, pushing the price above the EMA lines, could pave the way for a surge towards the resistance zone near $0.09.
Shiba Inu Faces Retracement Amidst Short-Term Profit Taking
Shiba Inu has encountered a retracement following its inability to sustain its upward trajectory near $0.00001, suggesting that short-term traders may be capitalizing on profits. This retracement has the potential to undermine buying confidence, leading to a consolidation of SHIB’s price within a bearish channel pattern. Presently, SHIB is trading at $0.0000094, marking a decline of over 1.6% compared to yesterday’s rate.
The decreasing 20-day Exponential Moving Average (EMA) at $0.00000965 and an approaching oversold Relative Strength Index (RSI) indicate that the momentum remains in favor of the bears. A further decline in price, breaking below $0.0000092, could bring SHIB closer to a crucial support level at $0.0000085, likely sparking renewed buying interest. However, if downward pressure persists, the meme coin might descend to $0.0000079.
On the contrary, a reversal of the price trend, surpassing the EMA trend lines, would signal accumulation by buyers and sustain an upward trend, potentially propelling the SHIB price toward a target of $0.00001.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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