Dogecoin (DOGE) is testing the lower trendline of a falling wedge formation, while Shiba Inu (SHIB) is eroding the critical support level of December. In this article, let’s take a look at the technical analysis of seasoned analyst Jonathan Morgan and get his price predictions for both meme coins/tokens.
Dogecoin offers a buying opportunity before returning to $0.28
Dogecoin price is developing strong uptrend patterns in the candlestick chart and the Point and Figure chart. However, the trend will likely find a violent reversal or a solid corrective move very soon. The primary reason for this reversal in the candlestick chart is due to a falling wedge pattern. Wedge patterns describe an overbought/oversold market and represent excess. A rising wedge is a bearish reversal pattern and a falling wedge is a bullish reversal pattern.
Dogecoin is just opposite the lower trendline of a falling wedge. DOGE creates maximum average levels between the daily close and Kijun-Sen, while trading at these extremes warns of a bullish average return move. The theoretical long position for Dogecoin price is a buy order at $0.17, a stop loss order at $0.15, and a profit target of $0.28. These technical levels represent a 5.5:1 reward/risk setup with a profit target of approximately 69% from entry. Additionally, a two to three box end stop will help protect any profits made after entry.
Shiba Inu holds critical support as it holds $0.000775 target
According to Morgan, whose analysis we share as Somanews, the long position for the Shiba Inu is; Entry near $0.0000375, stop loss around $0.00000275 and take profit around $0.000775 is the target. This technical idea represents a 4:1 reward/risk setup with over 100% profit on entry. A trailing stop of two to three boxes will protect any profits made after entry.