DOGE and SHIB threaten a steep correction
DOGE and SHIB are slowly losing the support of the masses that pushed prices to all-time highs. Until private investors are interested in them again, further losses are to be expected.
Price could soon retest the important level of support and determine if a new downtrend begins.
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DOGE and SHIB rallied together earlier in the year and posted exceptional gains before the entire market collapsed in May. Along with many other digital assets, both reached ATH as interest sold.
data from LunarCRUSH shows that the measured values for the social engagement of DOGE and SHIB are skyrocketing amid the market frenzy. LunarCRUSH measures social interactions such as likes, comments, replies, retweets and shares. DOGE recorded over 1.76 billion on May 9, while SHIB hit 122 million interactions.
Compare social engagement | The source: LunarCRUSH
However, the social activities of both houses have declined sharply since May. DOGE’s social activities are now reaching around 150 million interactions per day, while SHIB’s are reaching nearly 10 million.
As interest in DOGE and SHIB gradually wears off, their prices are likely to fall.
DOGE seems to be stagnating
The price movement of DOGE stagnated in the last 5 months. The 10th largest cryptocurrency by market cap saw a series of lower highs while the $ 0.17 support absorbed any downward move.
From a technical perspective, it looks like the price action is forming a descending triangle on the daily chart. As DOGE approaches the top of the consolidation pattern, significant price moves could be imminent.
The daily candle, which closes well above the hypotenuse of the triangle at $ 0.26, may result in an explosive breakout towards $ 0.41. However, investors should watch out for the x-axis of the triangle at $ 0.17, as a loss at that level could push DOGE to $ 0.04.
DOGE price table | The source: TradingView
While the macro outlook points to further stagnation until the support or resistance is broken, the near future looks bearish.
The DOGE price is currently held at $ 0.198 by the trendline in the Tom DeMark (TD) Sequential setup. This level of support is getting weaker and weaker over time, suggesting that it is about to break through. When this happens, DOGE is likely to be pushed down along the x-axis of the triangle at $ 0.17.
SHIB test again support
Like DOGE, SHIB has stagnated for a long time. Its price appears to be within a parallel channel on the daily chart.
Every time the SHIB rises to the upper or middle limit of the channel since June 5th, it has been rejected, pushed to the bottom. From this point onwards, the price tends to ricochet in keeping with the character of the channel.
SHIB was recently turned down by the upper bound of the channel and is currently trading below the middle trendline. The above conditions suggest that if last month’s price action repeats, the SHIB will fall to the lower edge of the channel at $ 0.0000582.
SHIB Price Chart | The source: TradingView
It should be noted that in the event of a bearish impulse, the SHIB would have to hold $ 0.00000582 as a closing price below this important demand wall could result in a 36% correction.
You can see the DOGE and SHIB prices here.
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Disclaimer of liability: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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