We take a look at the technical levels for DOGE and SHIB. Analyst Sheldon McIntyre, who determines the support and resistance levels according to the retracement rates of the August levels in both memecoins, also interprets the cup handle formations. Let’s start with DOGE…
Dogecoin price creates a new opportunity for latecomers
Dogecoin rose 15% on August 15 to capitalize on the cup handle pattern on August 12. The ensuing selling pressure pushed the price back as low as $0.288 and then failed to retrace $0.355 on August 16. With all this, he crafted a chart to lay the groundwork for the resumption of the evolving rally. Now, despite the 80% correction in January, Dogecoin price continues to record six positive quarters in a row. This period has been a roller coaster ride for Dogecoin investors. Subsequently, its emergence from the bottom of a cup with handle solidified the potential of memecoin to seek higher fiyadollarsars on a rare but strong base.
If we examine the formation formed. Movement from the bottom is 45% and 38% of the May-July correction. It requests a DOGE profit target of $0.417 while breaking the resistance defined by the 2 Fibonacci retracement. The target remains behind the 50% retracement of $0.457 and the tactically important June high of $0.463. Now, traders looking to trade the new chart can target the intraday high of August 16 at $0.355 to capitalize on the rally. Based on the daily close, $0.288 could be set as the stop level. In case its formation is triggered, it is 28% on August 7th. It reinforces the uptrend initiated by the 14% gain, increasing DOGE’s potential to break through resistance with 50% pullback and June highs.
On the other hand, a break above the June high of $0.463, a level strengthened by the mid-May highs, puts Dogecoin price on the low side of the 61.8% retracement at $0.529 with a series of DOGE peaks previously printed in mid-May. puts it in a positive position to test its projection. If Dogecoin price does not activate the bottom-up model, the stop remains a daily close below the 50-day SMA rising at $0.229. Alternatively, if DOGE triggers a bottom-up formation, the stop could be pulled higher from $0.288. Meanwhile, the Dogecoin price initially came out of the cup handle base on August 12, but 15% on August 15. It quickly returned to the handle before confirming the breakout with a 61 win. But DOGE backed out again, testing the high grip it had held so far. The zigzag trend has created a new challenge for DOGE, but if a bottom-up breakout occurs, the altcoin may prepare to rally more than originally anticipated.
What happened in the price of SHIB?
Shiba Inu price formed a cup-handle base throughout July and closed a day above $0.00000887 before swinging out on August 16. However, the breakout was met with profit taking, pushing the SHIB back into the grip zone and raising the possibility of a bull trap. While the breakout has not been cancelled, the potential to run towards the measured movement target of $0.00001214 is decreasing day by day…
A pre-bullish correction is expected in Shiba Inu price
On August 16, SHIB price activated a constructive bottom after several weeks of volatile movements, cool and complex price structures. The breakout is -10% on August 17. It was met with a return of 75 and marked the most significant daily drop since June 21. The pullback put SHIB traders on the defensive with a double-digit loss from the high entry price and a possible bull trap. The Shiba Inu price breakout on August 16 was accompanied by a bullish Golden Cross pattern on the nine-hour chart, which shows a reversal in the price structure to a higher time frame, creating a new source of momentum and support. However, it has been marred by the bearish momentum divergence and consequent reversal on the nine-saadollarsic RSI.
The bearish momentum divergence and lack of investors combined with the -10.75% retracement illuminated the importance of the support below the 50-day SMA at $0.00000728 and the low at $0.000000711. After these levels, a drop below $0.00000711 is 14%. It would represent a retracement of 54, then forcing SHIB to immediately withdraw to management support formed by May 19 low of 0.000000607. This level is the region that is effective in stopping the selling pressure during the June and July reversals. Finally, the analyst expects SHIB to correct before an uptrend. As Bitcoin and several altcoins hit new rallying highs, frustration is growing for SHIB investors. It reflects the uneven performance that can occur in the cryptocurrency complex and the persistent challenges of holding cryptocurrencies with outliers. Therefore, a move to $0.00001214 complicates the original bullish forecast, as SHIB has lost.