- Shiba Inu has experienced an impressive 1,000% increase in its burn rate, painting a positive picture of its price
- Somewhere around the $0.000008 zone, the bulls will likely push the price further upwards to $0.000014
- Dogecoin has been bearish for more than a month but is now in an ascending triangle
- Dogecoin may rally 15% to the upside very soon
Asides from the fact that both are some of the most popular memecoins on the market, they are famous for their sudden waves of bullishness that always seem t take the market by surprise, despite showing warning signs weeks before.
- Advertisement -
This article will jump into the specifics of these two memecoins, and highlight why both may be showing signs of a possible bullish upswing very soon.
Shiba Inu’s Burn Rate Spikes By 1,000%
Shiba Inu has chosen to start the week on a positive note.
As noted by ShibBurn, the website that tracks the burn rate of the cryptocurrency, Shiba Inu has experienced an impressive 1,000% increase in its burn rate
Despite the memecoin’s less-than-optimal performance in terms of price action over the last few weeks, the burn rate of any cryptocurrency signifies the number of coins removed from circulation and permanently destroyed.
And if the relationship between supply and price is anything to go by, the price of any asset is expected to go up when the circulating supply decreases, as long as the demand remains constant.
This may mean that although the memecoin has been somewhat stagnant over the last few weeks, better days may be on the way for it.
- Advertisement -
From a longer-term perspective, Shiba Inu appears to be in an ascending channel. And a likely explanation for its bearishness over the past month is the memecoin’s descent from the top of the channel around the $0.0000158 zone on 4 February this year.
From the short and medium-term perspectives, the memecoin is bearish and is currently trading under the 50 and 200-day moving averages.
This means that the bears are very much in control, and are capable of sinking the price lower.
However, the bulls have a stronghold. Somewhere around the $0.000008 zone (at the bottom support of the channel), the bulls are likely waiting for the bears and will attempt to push the price further upward of $0.000014 and beyond.
- Advertisement -
According to CoinMarketCap, Shiba Inu is down by 2% over the last seven days at the time of writing.
Dogecoin May Be Headed For A 15% Rally
Dogecoin has been bearish for more than a month, crashing -38% from a $0.1 high and hitting a rocky bottom around $0.063 in the second week of March.
At the same time, the cryptocurrency has been on the rise over the last two weeks and now appears to be recovering from its lows.
This ongoing rally, however, has hit a roadblock around the $0.079 zone and Dogecoin is struggling to break through.
Over the last few weeks, the memecoin has traded relatively sideways, rallying to the upside, hitting resistance around this $0.079 roadblock, and declining to the bottom of what now appears to be an ascending triangle.
This chart formation indicates that the bulls are struggling to take control of the market, and maybe winning as the candlesticks begin to tighten.
The RSI shows slightly bullish neutrality, indicating that both parties are gearing up for a move against one another, and the bulls may be getting the upper hand.
Overall, a breakout is bound to happen at any moment, launching Dogecoin 15% to the upside towards the $0.1 zone again if the bulls win, or towards $0.063 if the bears manage to win the fight.
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.