Key Insights
- From the 4-hour timeframe, Dogecoin shows a downtrend that has lasted for a week.
- Shiba Inu is also down 9% from its highs, which is not nearly as huge a dip as Dogecoin.
- The crypto market has taken quite a major hit over the last few weeks.
Dogecoin is once again tumbling. The crypto market has taken quite a hit over the last few weeks. The global crypto market cap has also lost its $1 trillion valuation and has fallen to $980.35 billion at the time of writing.
Bitcoin’s dominance has also dropped this week. The dominance of the flagship cryptocurrency also fell to a four-year low of 38.67% as of 5 November 5. According to data from CoinMarketCap, the digital asset’s market dominance last experienced such a decline on 10 June 2018, when it slid down to 38.19%.
However, this article focuses on the two biggest memecoins by market cap, Shiba Inu and Dogecoin.
So far, the market has wrung out most of the gains these two memecoins made in late October and early November this year.
While these cryptocurrencies’ main rivals, Bitgert (BRISE) and Centex (CENX), have benefited from Dogecoin and Shiba Inu’s declines, these memecoins have been on a steady downward trend.
Dogecoin & Shiba Inu Price Analysis
According to a recent analysis, some traders and investors opening short positions on Dogecoin (DOGE) and Shiba Inu (SHIB) are buying Bitgert and Centex, two coins performing well at the time of writing.
This also comes when the Federal Reserve hiked the FED interest rates by 75 basis points for the fourth time in a row in its November meeting last week, which the market is still recovering from.
Due to the abrupt rise in price on both Shiba Inu and Dogecoin (Dogecoin especially) that can only be described as “inorganicâ€, this current price decline was expected to happen later in mid-November (recall that Dogecoin virtually doubled in price in under a week).
Twitter, as well, is still mute about the whole Dogecoin payment system integration issue, leading to a lack of the much-needed fundamentals for the memecoins to advance further upwards.
Dogecoin in the Charts
From the 4-hour timeframe, Dogecoin shows a downtrend that has lasted for a week. On 1 November 2022, the price of the memecoin hit a $0.16 high.
Soon after hitting this level, it started to plunge, eventually hitting the $0.11 support; it broke through in late October during its bullish stint.
Dogecoin has broken through this $0.11 support and is trending lower as the hours roll by. The memecoin has fallen by more than 13% over the last day and sits at $0.10 at of the time of writing.
As illustrated above, Dogecoin has broken through the lower resistance of the Bollinger bands in its medium-term timeframe (4-hour). This indicates that the bears have taken full control and are incentivised to lower the Dogecoin price.
Despite the massive dip in the price of the cryptocurrency, the RSI on the daily chart has only just hit the Neutral zone, indicating that the price of Dogecoin can still go much, much lower under the influence of its bears.
Shiba Inu in the Charts
According to data from CoinMarketCap, Shiba Inu is down 9% from its highs, which is not nearly as huge a dip as Dogecoin.
However, the cryptocurrency trades at $0.00001096 at the time of writing and has been ranging between $0.00001094 and $0.00001208 over the last 24 hours.
The price action on Shiba Inu shows that after breaking the $0.00001180 support (blue line) to the upside in late October and reaching a high of $0.00001514, the cryptocurrency started to fall, eventually hitting this same $0.00001180 support again and retesting it severally.
Over the last day, the Shiba Inu bears have won against the bulls, and the cryptocurrency’s price finally broke the resistance line to the downside.
Similar to what we see on the Dogecoin charts, the RSI on Shiba Inu’s daily chart shows that the market is only slightly oversold. This indicates that the cryptocurrency’s price has a real chance of falling lower over the coming days.
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.
