Crypto Market Analysis: Shiba Inu (SHIB) And Dogecoin (DOGE) On The Edge Of Bearish Channel Pattern
Despite Grayscale’s recent win against the SEC fueling a significant surge in Bitcoin and the cryptocurrency market, those gains have been wiped out. The SEC’s decision to postpone the approval of a spot BTC ETF triggered a market-wide selloff and meme coins like Shiba Inu and Dogecoin haven’t been spared. After a short-lived bullish rally, both tokens have reverted to their pre-surge price levels, raising concerns as they now trade within a bearish channel pattern.
SHIB And DOGE Flash Downward Volatility
Concerns are rife in the meme coin ecosystem due to recent ‘rug pull’ allegations surrounding Pepecoin. However, Dogecoin and Shiba Inu are still capturing investor attention, as capital flows into these tokens due to Bitcoin’s increased volatility following recent impactful developments.
Traders of Dogecoin are bullish on the token’s future prospects, especially as Elon Musk’s Platform X shows signs of adopting crypto payments. Simultaneously, Shiba Inu is invigorating its community with positive developments, setting new records daily with its Shibarium launch. However, despite these encouraging signs, there’s a concern about a possible slump for both meme coins in September.
Shiba Inu (SHIB) Price Analysis
Analyzing the 4-hour price chart of Shiba Inu, bears are currently attempting to break below the symmetrical triangle pattern’s uptrend line. Despite bullish pressure, there’s a growing selling domination among traders amid the market selloff. As of writing, SHIB’s price trades at $0.0000079, declining over 2.5% in the last 24 hours.
If bulls fail to defend the current downtrend below the pattern, this could signal that bearish elements are gearing up for a return. In this scenario, SHIB’s price might head toward its next support of $0.0000073.
However, a robust bounce back from the current downward channel could indicate that buyers are defending declines, enhancing the chances of a rally that exceeds the EMA50 trend line. If this occurs, the price of SHIB could potentially break out of the triangle pattern, targeting a trade level above $0.00001.
Dogecoin (DOGE) Price Analysis
Recently, Dogecoin touched its 20-day EMA, valued at $0.064, although it’s proving difficult for the bulls to keep the price above this point. Currently, DOGE’s price is trading at $0.063, declining nearly 4.2% from yesterday’s rate.
If the price experiences a decline from where it stands now, this would indicate that sellers are willing to meet bearish goals. In that case, the DOGE price might consolidate above $0.06.
Conversely, if the price holds its ground without losing much value, this could signify that bullish momentum is still strong. This scenario could set the stage for a possible surge to its breakdown level of $0.068.
