Dogecoin (DOGE) is consolidating above the $0.230 support level in anticipation of a major rally. It recently came to the fore when cryptocurrency exchange Coinseed was fined $3 million for converting customers’ funds to DOGE without their consent. On the other hand, SHIB has surpassed the 0.00000623-654 demand zone after a sudden drop. What happened in Memecoins? We continue with the technical analysis of analyst Alash Girimath…
Doge price ready to rise?
Dogecoin price extended its 24-hour gains as high as 5% after briefly trying the $0.230 support base. Although this retest is on the rise, the risk of withdrawal is still on the table, according to the analyst. DOGE’s breakout of this barrier before starting a new uptrend also raises the possibility of retesting the $0.213 demand zone. According to the analyst, DOGE is aiming for a climb to $0.308 regardless of where it bounces. However, obstacles may be encountered along the way.
After this price movement, assuming that Dogecoin started the new rise at $0.230, its price will first meet the $0.256 and $0.268 resistances. Turning these resistances to support could open the way for a retest of the $0.308 zone. Afterwards, further increase in buying pressure will push the price of memecoin to $0.308, which is a 30% rise. In some cases, Dogecoin price could extend this rise to the next hurdle at $0.328. On the other hand, if DOGE fails to bounce off the $0.230 support, it will signal increased selling pressure. In an extremely bearish situation, Dogecoin price could retest the $0.213 demand base. However, a break of the $0.193 base level would create an LL, invalidating the bullish thesis.
What happened in the price of SHIB?
Another memecoin, Shiba Inu, spiked and its price moved towards the $0.00000625 and $0.00000654 resistances. According to the analyst, investors can expect this area to serve as a foothold and increase SHIB by 30% to $0.00000882. Conversely, a drop below $0.00000459 will invalidate the bullish argument.
SHIB technical analysis
The Shiba Inu price has been on the decline since hitting $0.00000950 on August 16. The decline left two important obstacles behind, but it managed to recover quickly and implied that more gains would come. A 31% drop from the August 16 high of 0.00000948 tagged the $0.00000654 support base. The resulting uptrend was temporary and led to another sell-off pushing the $0.00000624 support.
However, as the bulls come to the rescue, SHIB has recovered and is currently trading above these hurdles. A continuation of the uptrend could force Shiba Inu price to reach the resistance level at $0.00000768 and then $0.00000835. Successful conversion of these hurdles to support will allow SHIB to set the 50% Fibonacci retracement level at $0.00000882, which is a 30% rise from the current position.
Another important point is that although SHIB price was able to break past the $0.00000882 resistance level, it is unlikely to repeat given the importance of this barrier. While this optimistic scenario seems plausible, it is based on difficult conditions as the uptrend starting at $0.00000654 continues to push SHIB higher. However, failing to do so could result in a pullback to a low range of $0.00000549. A decisive daily candle close below this area will invalidate the bullish argument. In this case, investors can expect the Shiba Inu price to head towards the April 20 high of $0.0000419.