The cryptocurrency market has been shaken by a significant downturn, with many leading digital assets experiencing double-digit losses. Memecoins, in particular, have been hit the hardest, suffering a collective valuation drop of 11.48%. As a result, both Dogecoin and Shiba Inu find themselves among the top losers in the market.
Amid this bearish phase, many investors are left pondering questions like, “Is it wise to invest in memecoins now?” and “Can Dogecoin recover from this slump?” Below, we explore the latest market trends, analyze price movements, and outline potential price targets.
Dogecoin (DOGE) Analysis
Dogecoin recently faced a steep bearish pullback after encountering resistance near the $0.3850 level. Over the last 24 hours, the cryptocurrency has dropped 10.83%, with a trading volume of $5.458 billion. Despite the setback, Dogecoin continues to hold its position as the 7th largest cryptocurrency, boasting a market capitalization of over $51 billion.
Technical indicators show mixed signals for DOGE. The Relative Strength Index (RSI) has declined sharply, with its trendline showing signs of bearish convergence. On the other hand, the 50-day Exponential Moving Average (EMA) serves as a crucial support level, hinting at a possible recovery.
Should bullish momentum return, Dogecoin could retest the $0.385 resistance level within the week. However, if selling pressure intensifies, the price might drop further, testing the $0.325 support zone.
Shiba Inu (SHIB) Outlook
In the past 24 hours, Shiba Inu has seen a price correction of approximately 10%, accompanied by a trading volume of $814.28 million. Although SHIB has achieved a 2.86% gain over the past week, its yearly performance shows minimal fluctuation, with less than a 1% change.
Indicators such as the Moving Average Convergence Divergence (MACD) suggest a bearish trajectory, with the green histogram shrinking and signaling downward momentum. Additionally, the Simple Moving Average (SMA) aligns with this sentiment, indicating further bearish pressure.
If a market reversal occurs, SHIB could aim for its upper resistance at $0.00003080. Conversely, if bearish forces strengthen, the price might decline toward its critical support level of $0.0000170.
Always remember to do your own research (DYOR) before making any investment decisions!