Dogecoin and Shiba Inu trigger a rebound, meeting buying demand! Is Meme Coin Gaining Momentum?
Fueled by Bitcoin’s impressive rise towards $40,000, there has been a notable uptick in the meme coin sector, particularly seeing an increase in buying interest for major meme coins such as Dogecoin and Shiba Inu. This meme coin has bounced from its previous lows and is now targeting higher resistance levels. Additionally, the market is observing a growing tendency to hold these assets, especially driven by expectations that Dogecoin could be integrated into the X payment system.
Mixed feelings about Dogecoin and Shiba Inu
In recent years, the number of Shiba Inu addresses facing losses has increased, with 68%, or approximately 902,000 addresses, now experiencing losses. Conversely, the proportion of highly profitable Dogecoin addresses has decreased to less than 50% and currently stands at around 2.7 million addresses.
On the positive side, Dogecoin’s volatility is currently rising at 76%, indicating that a big move is likely ahead. Additionally, Shibarium is making important milestones as it is ready to launch a robust coin burning strategy for its Shiba Inu tokens. This strategy aims to reduce circulating supply by transferring tokens from the blockchain to inaccessible wallets.
Meanwhile, open interest (OI) for both meme-based cryptocurrencies remains stable, suggesting normal trading activity. Currently, Dogecoin’s open interest is trading at around $400 million, while Shiba Inu’s open interest is around $16 million.
DOGE price analysis
Dogecoin has remained below its 20-day exponential moving average (EMA) of $0.08 in recent days, but a decline to $0.07 failed to materialize as bears were unable to push the price below $0.075. The bulls successfully defended the level and triggered a rebound. At the time of writing, DOGE price is trading at $0.079, up more than 2% from yesterday.
The stable trend of the 20-day EMA with the relative strength index (RSI) at the midline level of 44 suggests a balanced move. If the price breaks above the descending resistance line, it could surge to $0.095.
However, if the price faces resistance near $0.085, the bears may gain confidence and send the price to $0.07 to test the patience of buyers.
SHIB Price Analysis
Shiba Inu successfully tested the accumulation area of $0.0000084 and now buyers have pushed the price immediately into the Fib channel. However, the price continues to face rejection near the EMA20 trendline. At the time of writing, SHIB price is trading at $0.0000089, up 1.6% in 24 hours.
If buyers push the price above the 20-day EMA and keep it above the resistance at $0.0000095, Shiba Inu could surge above $0.00001. In this case, there may be consolidation below $0.000012.
Conversely, if the price reverses from the 20-day EMA, this means that the bears are actively selling during the price rally. This scenario could increase the chances of the price falling towards the support at $0.0000083.