Dogecoin (DOGE) and Shiba Inu (SHIB) suffered steeper correction, accumulating losses of more than 20% each during recent dip.
Let's analyse them.
Dogecoin likely to revisit lows seen at the end of February
Dogecoin has been in a downward trend since March 28. The meme coin has formed consistently lower highs and lower lows. Nearly a month ago, on April 2, there was a bearish sign in Dogecoin’s Moving Average Convergence Divergence (MACD) indicator.
The signal line crossed over the MACD line, a bearish crossover that was followed by a further decline in DOGE price. In the ongoing correction, the February 29 and 28 lows of $0.1113 and $0.0947 are the next support levels.
A daily candlestick close above close at $0.1333 could invalidate the bearish thesis, indicating the possibility of a price recovery. In such a scenario, the April 30 high at $0.1460 is the immediate resistance for DOGE.
Shiba Inu holders brace for further correction
SHIB is gearing up for a 13% correction, or a decline to the April 13 low at $0.00001830, as its downward trend looks likely to persist.. The Relative Strength Index (RSI), a momentum oscillator, is at its lowest level since October 2023 at 34.66. Once RSI makes a comeback from its decline below 30, it could generate a buy signal, implying that SHIB is oversold.
The Moving Average Convergence/ Divergence (MACD) indicator crossed below the signal line on Monday. This reaffirms the bearish thesis for the Shiba-Inu-themed cryptocurrency.
If SHIB closes above $0.00002476 (the 23.6% Fibonacci retracement level of the decline between the March 5 top of $0.00004567 and the April 13 low of $0.00001830), it could invalidate the bearish thesis. SHIB faces immediate resistance at the April 23 high at $0.00002814.