Story Highlights:
With over $34 billion withdrawn from the meme space, the frenzy for meme coins has clearly cooled down.
Despite other tokens attempting to recover, the prices of Shiba Inu and Dogecoin still struggle to attract buying interest, raising concerns about the future price direction.
A few days ago, after Bitcoin broke $108,000, the crypto market experienced a massive sell-off. However, the prices of Dogecoin and Shiba Inu had already started to decline before Bitcoin's crash, indicating that investors had exited the meme coin market early and turned to other mainstream tokens.
As other cryptocurrencies rebound, these meme coins face significant upward pressure, but DOGE and SHIB struggle to break through their respective resistance levels.
Dogecoin (DOGE) price analysis:
After a sharp decline in the past few days, Dogecoin has significantly retraced since the beginning of this week. The midweek crash caused Bitcoin to fall below $95,000, dragging the entire market down, and DOGE dropped from around $0.32 to nearly $0.26. Although bulls are trying to pull the price back above $0.31, the rebound is still impacted by bearish sentiment, resulting in a weak trend.
The weekly chart of Dogecoin (DOGE) shows that the price remains under bearish pressure. However, the candlestick chart and RSI indicator appear to be forming a similar trend; if bulls can maintain the support level above $0.33 until the weekend, an upward movement may occur. Conversely, if the price falls below this support level, it may drop to $0.20 and face the risk of a massive sell-off.
At the same time, the ADX indicator is currently showing bearish signals and has demonstrated a trend of bearish divergence.
Therefore, despite Dogecoin still facing bearish pressure, if the price can close above $0.35, the current bearish trend may be broken.
Shiba Inu (SHIB) price analysis:
Furthermore, the price of Shiba Inu has fallen below the ascending wedge, leading to a price drop of over 30%. While a short-term rebound is possible, the current trend shows reverse signs from a technical perspective. The SHIB price may further adjust, potentially dropping below $0.00002.
The MACD shows weakening buying momentum and has produced a bearish crossover. Meanwhile, as the bearish trend gradually ends, the Ichimoku chart is starting to turn bullish. More importantly, the bullish crossover between the baseline and conversion line could invalidate the current bearish trend.
Therefore, the SHIB price remains at a critical stage, and trading in the next few days, especially before the weekend, may have significant implications for the market direction in 2025.