The past few days have been volatile for cryptocurrency markets, especially Shiba Inu and Dogecoin investors. Bitcoin recently retested the $50,000 area and experienced a sharp price drop, sending a bearish wave across the entire market and causing many meme coins, including the beloved Shiba Inu and Dogecoin, to lose momentum. However, analysts are expecting a strong rebound in DOGE and SHIB prices as they show potential for recovery.
Cryptocurrency market cap lost $2 trillion
Since January 22, the cryptocurrency market capitalization has maintained a consistent upward trend and reached an important milestone by exceeding $2 trillion, its highest annual value. Despite this impressive performance, prices have recently declined slightly.
In particular, the price of Bitcoin briefly rose above the $53,000 level. However, it has struggled to maintain upward momentum, causing anxiety among investors. This led to a surge in selling activity, with total liquidations exceeding $300 million in the last 24 hours. As a result, the Bitcoin price retreated to $50,500. Nonetheless, optimistic sentiment emerged and prevented further declines.
Dogecoin (DOGE) Price Analysis
The bears’ attempt to drag Dogecoin back into a symmetrical triangle pattern failed to meet the bulls’ defense. As a result, DOGE price continues to fall below the immediate Fib channel, weakening the chances of a bullish comeback. At the time of writing, the price of DOGE is trading at $0.0835, down more than 1% from yesterday’s rate.
The 20-day exponential moving average (EMA), currently at $0.085, is gradually trending downward, and the relative strength index (RSI) is falling below the midline toward 41, predicting a bearish advantage.
Any bullish signal could run into trouble if the price continues to trade below the moving average. Such a scenario would suggest that even a minor relief rally would result in an increase in bearish sentiment, accompanied by selling pressure. A drop below the upward trend line at $0.08 could create selling pressure.
However, if the bulls successfully reverse the current trend and send the price above the EMA line, the DOGE price is likely to surge towards the resistance area near $0.09.
Shiba Inu (SHIB) price analysis
Shiba Inu experienced a retracement after failing to maintain its upward trend near $0.00001, indicating that short-term traders may take profits. Typically, these retracements reduce buying confidence, allowing SHIB price to consolidate within a bearish channel pattern. As of writing, the SHIB price is trading at $0.0000094, down more than 1.6% from yesterday’s exchange rate.
The 20-day EMA falling to $0.00000965 and the RSI approaching oversold conditions suggest that momentum remains bearish. If the price falls further below $0.0000092, it could approach the important support at $0.0000085, a level that could again attract buying interest. However, if downward pressure continues, Mim Coin could fall as low as $0.0000079.
If the price reverses upward and exceeds the EMA trendline, it will be a signal for buyers to accumulate and the uptrend may continue, potentially leading SHIB price to the $0.00001 target.