How many chances do DOGE, SHIB have to recover immediately?
Just like the large-cap cryptocurrencies out there, the coin meme has struggled for the past few hours. In fact, DOGE and SHIB declined more that day than they did in the last 7 days.
Despite the massive declines, both are showing signs of recovery as of press time. Take a look at the graph below, they did quite well this morning.
DOGE has 2 green candles in the above timeframe. On the flip side, SHIB’s rebound looks even sharper with 3 consecutive green candles on the hourly chart.
Interestingly, the volume shown under the candle also increased. It can therefore be assumed that the participants actually started “buying the dip”.
DOGE / USDT (left) and SHIB / USDT (right) | Source: TradingView
Will the prices rise sharply from now on?
Less than a week ago, SHIB broke out of the descending channel and saw many green candles in a row. However, the price fell shortly thereafter, but apparently not too low.
On the daily chart, SHIB is trading just below the 61.8% Fibonacci level. If it continues to establish a green candle over the next few hours, the price may reclaim $ 0.00003798 as support.
Conversely, SHIB can drop as low as $ 0.00002413. If bears take control in such an event, a return to around $ 0.00000648 is expected.
SHIB / USDT | Source: TradingView
On the other hand, the outlook from DOGE looks a bit bleak. Over the past day, the largest coin meme has fallen below most supports and is trading at levels reminiscent of what happened in July, with the price even falling yesterday to lows last seen in April.
If the downtrend on the DOGE chart continues and breaks below the $ 0.158 support, there is a high chance the price will bounce back to $ 0.101.
However, it has managed to maintain the green candle trend in the lower timeframe and will gradually weaken losses and drop back to $ 0.2 after cracking above $ 0.182.
The community often plays an important role in restoring the coin meme. At the time of writing, Santiment’s sentiment data predicts a pretty interesting trend.
For the past few hours, mentions of DOGE on social media have been generally positive. In fact, the positive sentiment has successfully supplanted the negative sentiment. When the trend is flat, despite the stagnation in the charts, community members can successfully support the upward trend.
SHIB also has a similar trend. This basically means that the community members will continue to support both DOGE and SHIB no matter what happens during the day.
While coin memes often follow the path of Bitcoin and other large-cap altcoins, they have managed to break this trend several times recently. Regardless of the state of the broader market at this stage, these two coins could surprise participants. At this point, their chances of rebounding seem slightly higher than the downtrend continuing.
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