Shiba Inu Coin and Dogecoin Price Prediction – Price Action Looking Increasingly Bearish for SHIB/USD and DOGE/USD
Skerdian Meta • 2 min read
Cryptocurrencies continue to remain bearish, having posted some major losses today, after failing to turn bullish last week. They were quite bullish from July 20 until two weeks ago, but they have weakened since then and are declining further today, with BITCOIN falling to $42,000s which is a support and resistance area, while ETHEREUM has slipped below $3,000, which also is a support and resistance area.
Meme coins were weak even during the bullish period in August, before the softening in the second week of September. So, they are looking even more bearish now and the price action in particular, shows that for Dogecoin and the Shiba Inu coin as well, although with different chart patterns.
Shina Inu Analysis – SHIB/USD Fails at Resistance Below $1 Again
The bounce up and down contineus for Shiba Inu
Shiba Inu coin has been trading inside a range for a long time, since June, following the crash in May. On the daily chart above we see that this cryptocurrency has been trading between $0.0000055 and $0.0000095 for several months, which is a good range to trade, buy at the bottom and sell at the top.
Although, we saw a piercing of the support live earlier this month, during the flash crash in the crypto market. But, there was no close below it, so it didn’t count as a break and the range trading continued after the price bounced right back up. That shows that the buying pressure is strong down there.
After the bounce, the selloff was also pretty fast, which also showed that meme coins are quite bearish, as we see better now. Although on Thursday last week we saw another strong jump in SHIB/USD. The price reached the top of the range just below $0.0000095 where it formed a doji, which is a bearish reversing signal after the jump. Now the price is headed back down, so let’s see if Shiba Inu will reach the bottom of the range, where we would like to open a buy signal.
Dogecoin Analysis – DOGE/USD Breaks Below the 200 Daily SMA
The next target for sellers comes at $0.16 in Dogecoin
Dogecoin was looking better than Shiba Inu coin during the reversal in August, doubling in value. But that only lasted until the middle of last month, as Dogecoin started making lower highs after that, which is a sign of weakness. During the flash crash, DOGE/USD lost around 33% of the value, but the 200 SMA (purple) which had acted as support before on the daily chart, held as support again.
It gave the impression that the 200 SMA was going to hold as support and the decline was over. But, the crahs today brough an end to the reign of the 200 SMA, unless the price reverses and ends the day above it. So, we are following the price action today but are reluctant to take a trade here. If Dogecoin forms a strong bullish reversing pattern here, then it will be tempting to buy, but we will focus on Shiba Inu this time.