Shiba Inu and Dogecoin Enter Consolidation As Market’s Fear Recedes

·2 min read

Key Insights:

  • Shiba Inu maintained its price above the $0.00001 mark.

  • Dogecoin prevented further losses, too, trading at $0.068.

  • Bitcoin and Ethereum, too, consolidated at $20k and $1.1k.

SHIB and DOGE have been following the broader market trend for months now, which is why both the meme coins share a very similar trajectory. However, going forward, both the coins will be on their own paths.

Shiba Inu Keeps It Positive

The advantage Shiba Inu has over most of the other cryptocurrencies that stand to be its competitors is that despite the worsening market conditions, it still has price indicators highlighting a possible uptrend.

The first sign of the same comes from the MACD, which, even after a week-long red candle phase, managed to not give in to the bearish pressure. A bearish crossover has not occurred yet, although it is definitely inching closer.

The second sign comes from the Bollinger Bands, which, even though it might not be converging, will keep the price swings under control and that too in the upward direction.

This is because the candlestick is closing above the bias of the indicator, leaving room for growth.

This will come in handy when SHIBA needs to reclaim the 53.26% rally it made towards the end of June, right after losing almost 37% last month.

Dogecoin Does Not Follow Suit

At the time of writing, DOGE was trading at $0.68, far closer to flipping into a downtrend than Shiba Inu was.

Although, over the past week, the coin recovered whatever is lost, it is yet to reclaim the $0.89 level it was at before the crash of June kicked the altcoin down.

However, this won’t be happening any time soon since, according to the Parabolic SAR, the coin is at the edge of losing the support of the uptrend.

A downtrend would officially begin as soon as the white dots of the indicators place themselves above the candlesticks.

While the situation isn’t ideal, the investors can expect shorting opportunities for Dogecoin as the Relative Strength Index (RIS) is still stuck in the bearish zone teetering at the neutral line.

Had it managed to cross it, DOGE would have some support against significant depreciation

Going forward, both the meme coins will be adhering to the broader market trend, the result of which will be visible in the price action should they drop any further.

This article was originally posted on FX Empire

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