Memecoins Lose Momentum: Dogecoin (DOGE) and Shiba Inu (SHIB) Prices Plunge Aiming to Hit the Lower Support

The post Memecoins Lose Momentum: Dogecoin (DOGE) and Shiba Inu (SHIB) Prices Plunge Aiming to Hit the Lower Support appeared first on Coinpedia Fintech News

While Bitcoin started the week with a fine consolidation that it carried out throughout the weekend. Besides, the altcoins continue to suffer and have been corrected majorly, displaying the impending bearish actions. Among them are the popular memecoins Dogecoin and Shiba Inu which have been registered as the biggest losers for the day. When the Bitcoin price remains stuck around $27,800, will these tokens test the lower support?

Dogecoin (DOGE) Price Analysis

Dogecoin has pulled a fresh leg down and is testing the pivotal support zone between $0.567 and $0.571 for the third time in 2023. The DOGE price has been trading within a descending triangle ever since it faced a huge rejection in the last quarter of 2022. Now that the price is approaching the apex of the bearish pattern, the possibility of a major price action appears imminent. 

Although the technicals do not point towards a bullish reversal, the bulls appear to be gaining some strength. The average directional index (ADX), which is used to determine the strength of the trend, is trying to rebound from its interim lows. It indicates the rally is closer to gaining momentum and may trigger a rebound in the next few hours. Now that the price has reached the liquidity zone, a greater possibility of a trend reversal could be witnessed soon and reach beyond $0.6.

Shiba Inu (SHIB) Price Analysis

Being distinct from the majority of the crypto market, the Shiba Inu price has been maintaining a descending trend since the beginning of the year. The price has been trading within a falling wedge, which suggests a bearish narrative in the long term. However, strong support at $0.00000648 could hinder the descending trend. 

In the coming days, the price is believed to maintain a steep descending trend and test the lower support close to $0.0000065 or below. As the RSI has already reached oversold levels, a flip in these levels may eventually trigger a notable rebound in the SHIB price. As the trade progresses towards the monthly close, a larger possibility of surging above the upper resistance could be pivotal, reaching levels close to $0.000008.