According to crypto analyst Filip L, the Shiba Inu (SHIB) is on the cusp of printing its worst performance this year. The analyst says that Dogecoin (DOGE) is trying to recover from the wounds it received last week. Also, traders are showing another bearish trend on Terra Classic (LUNC). We have prepared Filip L’s analysis of SHIB, DOGE and LUNC for our readers.
“SHIB price far from home”
The Shiba Inu is set to show one of the worst performances in its history as cryptocurrencies fall again. After the LUNA debacle before the summer, traders relived this situation with FTX’s sudden default. The crypto asset class is still shaking on its foundations. Meanwhile, crypto exchange Genesis has also stopped refunds and withdrawals.
SHIB is therefore not in a good spot. Because the generic label contains some negative emotions and connotations. Things will have to settle down. However, if there are more casualties following FTX’s collapse, that will be the last straw for SHIB traders. SHIB is likely to drop once again to $0.00000507 before testing new lows.
SHIB weekly chartWith the contagion of FTX under control, some more bullish buying is possible, slowly but surely. This would make sense to see the Relative Strength Index (RSI) trading very close to the oversold level and preparing for a bounce higher. This likely means that SHIB price will move above the monthly S1 support level. It is possible for SHIB to stay near $0.00001000 before climbing higher after additional tailwinds.
“DOGE welcomes this consolidation”
Traders saw DOGE thrown into the trash. Because, as you follow on Kriptokoin.com, FTX has broken the fragile trust that the crypto market has regained. The translation was the sharp two-week decline that wiped out nearly all of last summer’s profits.
DOGE is fortunately supported by three weekly highs around $0.0700, just a few ticks apart in the same region. The first element is the monthly S1 support level at $0.0700. The other two elements, the 55-day Simple Moving Average (SMA) and the 200-day SMA, stand at around $0.0760. It will also be the first line of defense to catch any falling knives before the price action retraces to $0.1004.
DOGE weekly chartWhile that support is there, it may not be enough to support the price action as a few outside factors create some headwinds. Another missile hitting Poland, a combination of elements like re-engaged US dollar power and selling stocks could be a toxic cocktail that will make the DOGE price hit $0.0566 or even $0.0409. This is another FTX survivor. or after the re-emergence of geopolitical events, 30 to 50% of the losses will probably still occur.
“As markets revert to the 2022 model, the LUNC has become a crater”
Since LUNC saw the light of day, it sees $0.00016501 as a pretty significant level. It was at its peak during its opening week in May/June and saw a test. However, it failed to break it upwards in June and had a clear break in August. Since that rally, the price has been falling steadily lower in September. It’s also putting pressure on that level that led to last week’s test and this week’s current test.
LUNC also sees the bearish pressure from the red descending trendline that regulates the downtrend with lower highs each week. Despite the bulls approaching early last week, not even a false breakout could be triggered. With the FTX contagion, more downside surprises are possible in the coming days and weeks. This is likely to push LUNC to $0.000014422 first. Besides, it is likely to crater towards $0.000006166 as more dollar strength re-enters.
LUNC weekly chartWhile that support is there, a few outside factors creating some headwinds probably won’t be enough to support the price action. It is possible that geopolitical and economic risks will cause DOGE to drop to $0.0566 or even $0.0409. In such a case, 30% to 50% of the losses are still likely to occur.
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