Technical analyst Akash Girimath sets the next levels for DOGE and SHIB as they prepare to complete a series of patterns shaped by a multi-month downtrend…
How can Shiba Inu (SHIB) benefit from the next rally?
Shiba Inu price action between January 5 and February 8 formed a circular bottom pattern, as we have covered in the cryptokoin.com analysis. The second half of the model, although not yet completed, provides an opportunity for early investors to enter. The technical formation is a bottom reversal pattern predicting a 38% rise. The target is obtained by measuring the depth of the circle and adding it to the breakout point at $0.0000329: $0.00000454. According to analyst Akash Girimath, $0.0000265 entry from the current position could be suitable for a possible rally and would represent 70% gain. Also, the daily demand zone stretching from $0.0000235 to $0.0000255 makes the rise challenging for early market participants. While things are looking extremely optimistic for
SHIB price, traders need to be cautious until a break above $0.0000329 occurs. Failure to do so could increase downside risk. If buyers fail to sustain SHIB above $0.0000235, a possible lower low (LL) will invalidate the bullish argument. In such a case, a 10% drop can be expected to retest the March 13 low of $0.0000211.
Why can Dogecoin price consolidation result in an explosive rally?
Dogecoin is a little more active than Shiba. DOGE price rose 40% between March 13 and 28, hitting $0.153. This explosive move created an appearance, also known as the demand zone, which helped prolong the uptrend. The support area extends from $0.127 to $0.137 and DOGE is currently hovering above it. After another consolidation above this range, it could extend the trend towards the $0.163 and $0.194 weekly resistance levels. In total, this increase will represent a 50% gain from the current position of $0.144.
Technically, regardless of the bullish outlook for Dogecoin price, a sudden crash for Bitcoin could impact DOGE without any reversal. In such a case, a daily candlestick near $0.127 will invalidate the bullish argument. This development could lead DOGE to drop further to the $0.109 support level.
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