Bitcoin bulls rose 5% in the first hours of March 9 in an unexpected move. Ethereum, Solana, Terra, Cardano and Avalanche accompany the leading crypto. Dogecoin and Shiba Inu are recovering slightly to retest critical resistance levels. In this post, let me examine the next technical levels of the two meme coin giants.
Dogecoin price is threatened with a crash
Dogecoin price set the $0.744 ATH level on May 7, 2021 and has been in a downtrend ever since. This ten-month bear rally reduced DOGE’s market cap by 84% to the currently trading $0.118. The recent crash forced the meme coin to shatter the critical support level at $0.127 and tipped the odds in favor of the bears. Further down, critical supports are in the $0.074 region, which ranges from $0.0075 to $0.119. If this happens, Dogecoin will drop 35% and form a new local bottom.
IntoTheBlock’s Global Entry/Exit (GIOM) pattern shows that the critical support base of $0.111 is absent and will likely break easily with a short-term increase in selling pressure. Therefore, roughly 556,740 addresses are likely to visit the $0.045 level, where roughly 10.89 billion DOGE was purchased. This support closely aligns with the technically achieved target and is the only stable support that should be able to absorb the incoming selling pressure.
Another thing that further points to a bearish trend in Dogecoin price is the drop in the number of large transactions valued at $100,000 or more, from 1,710 to 1,190. This 30% drop in transfers, which represents the investment thesis of whales, shows that these investors are not interested in DOGE at current price levels.
Based on the on-chain and technical analysis above, Analyst Akash Girimath thinks that a daily candlestick close above $0.163 will trigger a rapid increase in buying pressure and create a higher top that signals an uptrend. Such a move would invalidate the bearish thesis for Dogecoin price.
Shiba Inu managed to maintain the $0.000022 support
SHIB is currently trading just above the $0.00022 support which has turned into a previous resistance zone.
According to another expert, Jonathan Morgan, the following levels can be followed for an ideal long position.
$0.00001200 stop loss (SL)
Take $0.00004540 profit (TP)
Note that these analyzes are not imprecise.
As a result, the above idea of long position will be invalidated if the Shiba Inu price drops to $0.000014 or below before the entry is triggered. However, if SHIB continues to drop, the entry and stop-loss move together – but the profit target remains the same.