16 C
21 May 2024
Image default

Dogecoin and Shiba Inu Await Breakout for Over 100% Rally

The volatility recorded in the broader crypto ecosystem impacted memecoins remarkably with the spotlight on Dogecoin (DOGE) and Shiba Inu (SHIB). With the bearish outlook, Shiba Inu slumped by 10.65% in the trailing 7-day period, dropping as low as $0.000022 in that time.

Dogecoin was not spared either as bears dragged it down by over 11% to a weekly low of $0.142. Amid this slump, crucial on-chain technical data shows an uptick for over a 100% rally cannot be ruled out.

Dogecoin Bulls Set To Take Advantage

Dogecoin is currently signaling showcasing a mildly oversold trend on the daily chart. The coin’s Relative Strength Index (RSI) comes in at 45, slightly up from the 34 recorded on May 1. This heightened selling pressure underscores a likely bullish trend change is underway.

DOGE/USDT 1D Chart. Source: TradingView
DOGE/USDT 1D Chart. Source: TradingView

The signals are there as Dogecoin is trading above its 200-Moving Average (MA) but below its 50-day MA. Known as a highly volatile asset class, it becomes immediately difficult to predict a solo bullish rally for DOGE. The broader market sentiment remains a crucial factor that can help sustain the mild uptick in the Open Interest (OI). At the moment, Coinalyze pegs the OI at $645.6 million, up by 0.87% at the time of writing.

For Dogecoin, the $0.16 resistance level remains a crucial level to watch. With at least 3 attempts to breach this level over the past 4 weeks, surpassing this point might push the price of DOGE to $0.2 in the near term. Besides the impact of Dogecoin whales, the coin has limited fundamentals to trigger the run, however, market trend and its historic precedence may help trigger at least a 100% rally in near term.

Shiba Inu To Lead By Example

Shiba Inu bulls have many things to prove both to themselves and the memecoin ecosystem. In recent weeks, Shiba Inu has outdid itself with more than 116% growth Year-to-Date (YTD). The recent downturn triggered a drop in its RSI which is now pegged at 42.

Shiba Inu 4H Chart. Source: TradingView
Shiba Inu 4H Chart. Source: TradingView

An unprecedented trend change is also expected for Shiba Inu as confirmed by the Moving Average Convergence Divergence (MACD). Unlike Dogecoin, many fundamentals are driving Shiba Inu, including its growing burn rate. Additionally, the token continues to gain a widespread adoption by mainstream payment outfits like Bitpay.

In all, Shiba Inu’s deep correlation with Bitcoin may serve as its biggest boom in pursuit of a 100% resurgence.

Read More: Former PayPal Chief Predicts Bitcoin Lightning as Future Norm for Corporate Transactions

The post Dogecoin and Shiba Inu Await Breakout for Over 100% Rally appeared first on CoinGape.

Related posts

El Salvador Development Bank Refuses to Release Their Bitcoin Records


Twelve Data to Run Chainlink Oracle Node to Provide Premium Financial Data to Blockchains


All Eyes On Russia’s Crypto Shift As West Considers SWIFT Sanctions

Verified by MonsterInsights