As the uncertainty of the Russia-Ukraine war ripples the leading cryptocurrency below $40,000, meme coins Shiba Inu (SHIB) and Dogecoin (DOGE) are suffering volume losses that cannot tolerate any more bear pressure. In this post, let’s take the next critical support levels of the two meme coins with up-to-date technical analysis.
Shiba Inu (SHIB) may rise 30% and experience a break in its trend
As we have mentioned in the analysis of Kriptokoin.com, the Shiba Inu price has suffered significant losses since last week. Interestingly, there has been a huge increase in the trading volume of whales in the last 24 hours. Giant wallets have increased their meme coin activity with the recent drop in price. According to analyst Ekta Mourya, the increased trading volume can be interpreted as an indication of an increase in savings on Shiba or an increase in selling pressure.
Top 100 wallets holding Shiba Inu have added more SHIBs to their portfolio. Based on data from whale tracker WhaleStats, there is a 178.87% increase in the average Shiba Inu balance of major wallet traders.
Shiba value in Whale portfolios posted a 180.48% gain. Active addresses in the Shiba Inu network increased 880% alongside the growth of SHIB holdings in the whale portfolios. Historically, the meme coin accumulation of major wallet investors has been followed by a rally in the Shiba Inu price. Analysts predict a 30% increase in the Shiba Inu price trend. They argue that Shiba could gain momentum and enter an uptrend in the ongoing cycle. Additionally, they identified a Kuno twist on the Shiba Inu price chart on March 12, 2022. This indicator is considered a bullish signal for the Shiba price.
Dogecoin price puts bulls in danger
Dogecoin price managed to find support at $0.113 earlier in the week. A rally started shortly after DOGE sent price back to the $0.12 region and started a recent high at $0.124 on March 9. However, the rally was short-lived as the bears wiped out 80% of the emerging bullish momentum and brought the Dogecoin price back to test lows at $0.115. Day traders should remember that the last 6-hour candle is a wick that is considered a sell signal. Analysts consider it risky to enter at current levels as Dogecoin price is likely to sweep the liquidity underlying the March 7 drop at $0.113.
If the bulls fail to secure support in the $0.11 range, DOGE price is very likely to continue its downward move and take the February 24 low at $0.106. The invalidation of the bearish thesis can only happen if Dogecoin price manages to climb above $0.118. If this happens, DOGE will break past the local high of March 9 at $0.124, creating new price action in the $0.13 range.
Further decline will push DOGE below $0.1000
Analyst Filip L. emphasizes that Dogecoin has investors desperately seeking support, which can be found at $0.1067, the lowest level from two weeks ago. As for traders this level can be expected to be met with some bullish activity, it is the analyst’s technical setup to take a long position and place the stops below the $0.1004 historical level and the $0.1000 psychological level. But at the same time, this activity opens the door for bears to act, as the stops placed will attract bears and could see a bearish blade move as DOGE drops to $0.0700 monthly at the S2 support level. RSI continues to drop at a slow pace.
As the bull and bear battle continues, momentum can be gained at any time and this factor needs to be factored into the DOGE price action. It can be expected that this will see a short test and a quick break above $0.1255, facing the feared $0.1400 area where the two previous highs, the 55-day SMA and the monthly pivot intersect. Depending on the impact, the analyst expects to see a continued rally near the monthly R2 resistance and the 200-day SMA, possibly as far as $0.2000.
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