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Meme coins remain weak despite the retrace up in March

Shiba Inu (SHIB), Dogecoin Fail Again to Turn Bullish

Posted Tuesday, April 12, 2022 by
Skerdian Meta • 2 min read

Meme coins put up a great performance last year, despite the pullback. Although since the reversal down, these pla-to-earn coins have lost around 80% of their value and moving averages have been providing resistance, pushing the highs down during retrace up for the Shiba Inu and Dogecoin. Toward the end of March, we saw a bullish reversal as they tried to turn higher but that seems to have failed now, so these two tokens might be resuming the downtrend again now.

Shiba Inu Daily Chart – SHIB Failing at the 200 Daily SMA

Now the support at $0.000020 will be tested again 

Shiba Inu coin was sliding lower on a constant downtrend after the surge in October last year, and the 50 SMA (yellow) was acting as resistance on the daily chart. Since January though, this meme coin hasn’t been making any new lows and has formed a range as it has attempted a couple of times to turn bullish.

But, buyers have failed both times, once at the 100 SMA (green) and once at the 200 SMA (purple). So, the price has reversed back down this month and now SHIB traders are facing the support at $0.000020 again. Last year, Shiba introduced the new version of Shiba Inu’s DEX, ShibaSwap 2.0, which has a feature that allows the burning of SHIB coins. Last week, Shiba Inu’s network burn rate jumped to 26,600% with 1.4 billion SHIB being destroyed. But, that didn’t help the price much and now this cryptocurrency remains bearish.

Dogecoin Daily Chart – The 200 SMA Acting as Resistance

Can the 50 and 100 SMAs turn into support for Dogecoin now?

Dogecoin has been bearish since May last year, after the crypto hype of the first several months faded due to the crackdown from China. Dogecoin formed a support zone around $0.1650 but eventually broke below it, as moving averages kept pushing the highs lower. Last month we saw a bullish reversal, as the sentiment in the crypto market improved and DOGE/USD pushed above the 50 SMA (yellow) but the 100 SMA (green) remained as resistance.

Elon musk who is very closely associated with Dogecoin, expressed his admiration for the idea of replacing Twitter’s logo with Doge’s in a tweet, which fueled the memecoin further, sending it above the 100 daily SMA. Following these tweets and the purchase from Elon Musk of the biggest part of Twitter shares, Dogecoin experienced another double-digit increase but it was unable to push above the 200 daily SMA (purple). Now, Dogecoin has reversed back down but it is finding support at the 100 SMA. If sellers push below the moving averages, then the bearish trend will be on again, otherwise we might decide to buy this memecoin around here if MAs hold.

Dogecoin Token Doge Live Chart

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