Volatility recorded in the broader cryptocurrency ecosystem has impacted memecoins significantly with Dogecoin (DOGE) and Shiba Inu (SHIB) taking the spotlight. With a bearish outlook, Shiba Inu fell by 10.65% in the trailing 7-day period. It fell to a low of $0.000022 at that time.
Dogecoin was not spared either as bears dragged it down more than 11% to a weekly low of $0.142. Amid this decline, crucial on-chain technical data shows that a slight rise of more than 100% cannot be ruled out.
Dogecoin bulls are set to take advantage of this feature Dogecoin is currently showing a moderately oversold trend on the daily chart. The currency's Relative Strength Index comes in at 45, up slightly from 34 recorded on May 1. This increasing selling pressure confirms a potential change to the upside.
The signals are found where Dogecoin is trading above the 200-day moving average (MA) but below the 50-day MA. It is known as a highly volatile asset class. It immediately becomes difficult to predict a single bullish rally for DOGE. Broader market sentiment remains a critical factor that could help sustain the uptick in open interest (OI). Currently, Coinalyze pegs OI at $645.6 million, an increase of 0.87٪
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