Dogecoin (DOGE) and Shiba Inu (SHIB) are supporting the bulls as lost gains this week are in the process of recovery. Crypto analyst Akash Girimath discusses what levels the technical charts shaped during the consolidation process could point to.
Shiba Inu (SHIB) price establishes launch pad
Since Jan 4, Shiba Inu price action has formed two separate pits resembling a bowl and a handle. From January 4 to February 9, SHIB formed a V-shaped valley, followed by a round bottom formation. The dish is not yet complete and SHIB is hovering around a crucial support area. If SHIB retests the $0.0000329 hurdle, it will prepare to complete the pattern. In such a case, this pattern predicts a 38% increase to $0.0000454, determined by measuring the depth of the pit and adding the breakout at $0.0000329.
As mentioned above, SHIB is hovering around $0.0000249 and is still far from completing the setup. However, as Shiba Inu price is trading in the $0.00000235 to $0.0000255 demand zone, a bullish reversal is likely according to analyst Akash Girimath. Therefore, saving now can yield higher returns to investors. If SHIB turns the $0.0000329 resistance into a support, it could rise 38% to $0.000454. In total, this move will yield an 83% gain from the current position. Additionally, a daily candlestick near the $0.0000211 support level will create a lower low, invalidating the bullish argument. According to the analyst, this development could give strength to the bears and deepen the collapse to $0.0000094.
Cardano price going upwind
Cardano price action from February 19 to March 23 formed a bottom reversal pattern similar to Shiba’s pattern. This technical formation contains two separate pits and the second is more circular. A breakout from this pattern signals a trend change supporting the bulls and he predicts a 25% rise to $1.26. This target is determined by adding the depth of the valley to the breakout point at $1. Despite making an excellent break out of the $1 psychological level on March 23, Cardano price failed to tag the predicted target at $1.26 as the momentum lagged behind. Additionally, ADA reversed the trend, returning to the 2022 volume control point at $1.05.
Due to the huge volume traded at $1.05, it acted as support for a while, but ADA eventually fell below that and is currently trying to overcome it. A successful recovery above $1.05 could trigger a short run to $1.26. In its second attempt, ADA could attempt to invalidate the bearish break from $1.22 to $1.35 by pushing it and producing a definitive close above $1.35. However, if it can clear the mentioned resistance, it will pave the way for Cardano price to retest the $1.60 hurdle. A daily candlestick close to below $1 will not only produce a lower low but also invalidate the handle-to-cup pattern. In such a case, the ADA price could pull back to the last support line at $0.85.
How is Dogecoin preparing for an explosion?
Dogecoin price action between May 3, 2021 and March 14 formed four highs and five lows on the weekly chart. Combining these swing points using two trendlines results in a falling wedge pattern. The technical formation predicts a 75% increase to $0.216, determined by adding the distance between the initial high and low swing low to the $0.123 breakout point. In the last week of March, DOGE produces a weekly candlestick above the upper trendline of the falling wedge, signaling a breakout. However, the following week saw huge profits and dips due to the sudden collapse of Bitcoin, which resulted in a retracement of the 28% gain.
With this price action, DOGE rallied around 5% today and is currently trading around $0.150. According to the analyst, this situation may provide a 42% gain if the uptrend continues. A local top is expected to form around $0.216, the theoretical target for DOGE. In a fairly high situation with buying pressure increasing, traders can expect Dogecoin price to hit the next hurdle at $0.322. This move will bring the total winnings to 113%.
While the outlook for DOGE is optimistic, a sudden U-turn for major crypto could ruin this textbook’s falling wedge setup. A weekly candlestick below $0.11 will form a lower low and invalidate the bullish thesis for Dogecoin price. Such a development will pave the way for DOGE to drop to $0.087; here, sideline buyers or long-term investors can give the uptrend a chance once again.
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