According to the indications, meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) appear to be facing an important supply zone. Analysts say this could trigger a correction.
Tom DeMark signals sell for Dogecoin and Shiba Inu
Dogecoin and Shiba Inu have recorded significant gains in the last ten days. However, it then shows signs of premature exhaustion. Despite the overall bearish market conditions, meme coins seem to have outlived the trend. DOGE has seen a nearly 47% increase in market capitalization since June 18. SHIB, on the other hand, increased more than 55% over the same period. Still, a certain technical indicator indicates that both tokens are poised for an increase in profit taking.
However, Tom DeMark (TD) Sequential is currently giving a sell signal on the daily chart of DOGE and Shiba Inu. In the meantime, let’s mention that the indicator in question has been correct for more than 25 signals before. Also, you can take a look at Tom DeMark’s successful signals from this article of Kriptokoin.com. According to analysts, the bearish pattern developing as a green nine candlestick is indicative of a one- to four-day candlestick retracement. Analysts evaluate the data as follows.
DOGE and SHIB one-day charts / Source: TradingViewMeme coins DOGE and SHIB meet resistance
Transaction history supports a pessimistic outlook for Dogecoin, as resistance is more important than support. About 12,600 addresses previously purchased 7 billion DOGE at an average price of $0.079. According to analysts, any signs of weakness are likely to encourage these market participants to exit their positions. This is also likely to increase the downward pressure behind the meme coin.
A possible increase in sales orders is likely to confirm the fall predicted by the TD setup as the top demand zone is $0.064. Here, more than 8,000 addresses hold 2 billion DOGE.
In/Out Money Against DOGE Price / Source: IntoTheBlockSimilarly, SHIB is facing stiff resistance at $0.000012, where 6,280 addresses previously bought 31 trillion SHIB. It is possible that these market participants try to sell their tokens to break even on the ups, limiting the ability of prices to continue to rise.
It is also worth noting that the most critical support zone for SHIB is $0.000010. So, if this previous level is broken, another correction to $0.000009 is likely.
In/Out Money Around Price for SHIB / Source: IntoTheBlockBy the way, it should be said that the odds are in favor of the bears. Therefore, traders need to pay close attention to the overall resistance for any invalidity signs. If Dogecoin can print a daily close above $0.079, it will likely have the strength to rally to $0.089. Meanwhile, the Shiba Inu will need to cut $0.000012 to increase the possibility of a rise to $0.000015.
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