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According to analyst Ali Martinez, DOGE and Shiba Inu may soon retest a critical support level that will determine whether a new downtrend will begin.

  • Dogecoin and Shiba Inu’s social engagement metrics have fallen since May.
  • According to the analyst, DOGE is now sitting at weak support and ready to retest $0.17.
  • Similarly, according to the analyst, SHIB is preparing for a drop to $0.00000582.

Dogecoin and Shiba Inu lost crowd support allowing them to skyrocket to all-time highs. Until individual interest returns, both assets could suffer further damage, according to the analyst.

Analyst: DOGE and SHIB may face sharp decline!

Meme coins are losing steam. DOGE and SHIB rose consecutively earlier this year, posting extraordinary returns before a market-wide crash in May. Along with many other cryptocurrencies, both hit all-time highs as individual interest in the market peaked. Data from LunarCRUSH shows that social engagement metrics of Dogecoin and Shiba Inu are rising amid the market frenzy.

Source: LunarCRUSH

LunarCRUSH measures social media interactions such as favorites, likes, comments, yandollarsar, retweedollarser, and shares. DOGE recorded more than 1.76 billion on May 9, while SHIB reached 122 million. However, the level of social activity for both entities has dropped since May. Dogecoin’s social activity currently has around 150 million interactions per day, while Shiba Inu’s has close to 10 million. As interest in DOGE and SHIB weakens, prices may face a sharp decline, according to the analyst.

Ali Martinez: Dogecoin could drop towards these levels!

Dogecoin’s price action has been stagnant for the past five months. The tenth-largest cryptocurrency by market cap has recorded a series of lower lows, while the $0.17 support level could absorb any dips. From a technical perspective, price behavior appears to lead to a descending triangle formation on the daily chart. A significant price action could be imminent as DOGE approaches the top of its consolidation pattern. A decisive daily candlestick near the hypotenuse of the triangle above $0.26 could result in a padolescent breakout towards $0.41.

Source: TragView

Still, traders should watch the x-axis of the triangle at $0.17 as support could see DOGE drop to $0.04. According to the analyst, the macro view points to more recession until support or resistance is broken, while it shows a bearish trend in the near future. Dogecoin is currently held at $0.198 by the setup trendline of Tom DeMark (TD) Sequential. This support level weakens over time, indicating that a breach is imminent. This level is likely to break soon, which will push DOGE down towards the x-axis of the triangle at $0.17.

Analyst warns: SHIB price may dive to these bottoms!

Cryptocoin. com, like Dogecoin, Shiba Inu is in a long period of recession. Its price appears to be inside a parallel channel on the daily chart. Every time SHIB has risen to the upper or middle border of the channel since June 5, a rejection has occurred that pushed the fiadollar yellow to the lower edge. From this point on, it tends to rebound, which is consistent with the characteristic of a channel. SHIB was recently rejected from the upper border of the channel and is currently trading below the middle trendline.

Source: TragView

These conditions suggest that if the price action seen last month repeats, the Shiba Inu will dive to the lower edge of the channel at $0.00000582. It is worth noting that SHIB should stay at $0.00000582 in case of a bearish breakout as closing below this critical demand wall could lead to a 36% correction.


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Michael Lewis

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