Dogecoin And Shiba Inu Meet Buying Demand By Triggering Rebound! Are Meme Coins Gaining Momentum?

The post Dogecoin And Shiba Inu Meet Buying Demand By Triggering Rebound! Are Meme Coins Gaining Momentum? appeared first on Coinpedia Fintech News

In the wake of Bitcoin’s impressive rally toward the $40,000 mark, there’s a notable uptick in the meme coin sector, particularly seen in the increased buying interest for leading meme coins like Dogecoin and Shiba Inu. These meme coins have bounced back from their previous lows and are now targeting higher resistance levels. Additionally, the market is observing a growing trend of holding these assets, especially fueled by the anticipation of Dogecoin’s possible integration into X payment systems.

Mixed Sentiments For Dogecoin And Shiba Inu

In recent days, the number of Shiba Inu addresses facing losses has increased, with 68% or approximately 902,000 addresses now experiencing losses. Conversely, the proportion of profitable Dogecoin addresses has fallen below 50%, currently standing at around 2.7 million addresses.

On a positive note, Dogecoin’s volatility is climbing, currently at 76%, indicating potential big movements in the coming days. Additionally, Shibarium is making significant milestones, poised to launch a robust coin-burning strategy for Shiba Inu tokens. This strategy aims to reduce their circulating supply by transferring them to inaccessible wallets on the blockchain.

Meanwhile, the open interest (OI) for both meme-based cryptocurrencies is holding steady, suggesting normal trading activity. Presently, Dogecoin’s open interest is trading near $400 million, while Shiba Inu’s open interest is around $16 million.

DOGE Price Analysis

Dogecoin has remained below the 20-day Exponential Moving Average (EMA) of $0.08 in recent days, yet the decline to $0.07 has not materialized due to the bears’ inability to drive the price below $0.075. The bulls have successfully defended the level and triggered a rebound. As of writing, DOGE price trades at $0.079, surging over 2% from yesterday.  

The stable trend of the 20-day EMA with the Relative Strength Index (RSI) near the midline at level 44, suggests a balanced move. Should the price break above the descending resistance line, we might see a surge toward $0.095.

However, if the price faces resistance near $0.085, bears might gain confidence and send the price to test buyers’ patience at $0.07.

SHIB Price Analysis

Shiba Inu has successfully tested the accumulation zone at $0.0000084 and buyers have now pushed the price toward immediate Fib channels. However, the price continues to face rejections near the EMA20 trend line. As of writing, SHIB price trades at $0.0000089, surging by 1.6% in 24 hours.

Should buyers send the price beyond the 20-day EMA and hold it above the resistance line at $0.0000095, Shiba Inu might surge beyond $0.00001. In this case, there might be a consolidation below $0.000012.

On the flip side, if the price reverses from the 20-day EMA, it would imply that bears are actively selling during price rallies. This scenario could increase the chances of the price dropping toward the support of $0.0000083.