According to data from CoinMarketCap, the market is back in greens today, with cryptocurrencies like Bitcoin and Ethereum having rallied by 4% and 3% respectively over the last seven days.
Dogecoin and Shiba Inu on the other hand, happen to be in sluggish phases over the same timeframe, with Dogecoin reversing into a 2.7% dip over the last week, and Shiba Inu taking a 1% slump.
However, this does not mean that both have nothing going on under the hood.
In this article, we dive into the price action of the two most popular memecoins in the world and attempt to find pressure points where breakouts may be primed to happen.
According to the charts, Dogecoin spent a whole month above the $0.0788 zone. On the 1-hour chart, we can see Dogecoin's price action before and after 3 March.
After managing to stay above the $0.0788 zone for about a month, Dogecoin gave in and finally broke through this level to the bottom.
The resulting slump took the memecoin to $0.062.
However, Dogecoin has been trying to get back up ever since and continues to inch closer to a breakout.
As illustrated by the chart above, Dogecoin is in an ascending triangle and is now nearing a squeeze.
When candlesticks start to enter a squeeze inside an ascending triangle, it usually means that a breakout to the upside is about to happen.
The next few weeks may see Dogecoin push itself into a squeeze that in turn causes a breakout above the $0.078 zone again.
The consolidation of the cryptocurrency has done much to push the RSI into a neutral position. Neutral RSI conditions usually mean that the bulls and bears are of equal strength at any point.
However, given the kind of formation Dogecoin is in, a breakout to the upside is likely to be the case, followed by a rally to the next bullish price target around the $0.09 – $0.1 zone.
It may be helpful to mention that Shiba Inu is overall bullish, and is even in an ascending channel from a long-term perspective.
According to the chart above, Shiba Inu is currently having a hard time breaking through its 20-day exponential moving average (purple line) and has been struggling since early march.
Zooming in on the 4-hour chart, we can see that the cryptocurrency is actually inside a mini symmetrical triangle.
The formation above is a protracted one and means that a breakout is coming very soon.
Zooming out again to the 1-day chart, we can see that the 20-day EMA coincides with the top of the mini-symmetrical triangle, indicating that SHIB is likely to continue further down to the bottom of the channel.
This means that slight bearishness on Shiba Inu is expected.
However, at the bottom of this channel, the bulls will likely push the cryptocurrency upwards again into a rebound, followed by a 90% rally to the next major resistance around $0.000016.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.