Key Insights:
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Dogecoin maintained $0.06 as support despite the recent dip.
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Shiba Inu made some recovery rising by 7.68%.
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Bitcoin and Ethereum recovered today to trade at $20k and $1.1k, respectively.
As the broader crypto market began to recover, bringing in about $64 billion in the last 24 hours, the meme coin market enjoyed gains as well.
The market cap rose to $14.6 billion after slipping to $13.9 billion yesterday, with DOGE and SHIB making a good recovery in the same duration.
Dogecoin Still Needs Support
The meme coin king Dogecoin has been struggling to sustain a rally as it has been following the broader market trend. This is why despite the 4.9% rise noted in the last 24 hours, DOGE will take a while before it can recover the losses it witnessed during the June dip.
The price indicators aren’t particularly optimistic either. The Bollinger Bands could be seen diverging slightly at press time, which indicates that volatility might be increasing soon. This would make DOGE susceptible to price swings.
Given that the candlestick is currently sitting beneath the basis of the indicator, any price swing observed would be in the downward direction.
Furthermore, the Relative Strength Index (RSI) isn’t flashing good news either. The indicator has been stuck under the neutral line for more than two months now, failing the chance to rise to the bullish zone. Thus DOGE is only set to decline further for the next few days.
Shiba Inu Performs Better Than Dogecoin
In comparison, yes, it did, but when it comes to individual performance, SHIB is no farther than DOGE’s trajectory.
Witnessing a 7.68% growth over the previous 24 hours certainly made SHIB holders happier than DOGE investors. However, SHIB is also set to observe some downward movement.
The first indication of the same comes from the Parabolic SAR. The indicator’s white dots moved their position from beneath the candlesticks to above them, highlighting the beginning of a downtrend.
After noting an uptrend for almost three weeks, the investors might end up returning to the state of losses they were at nearly a month ago.
Secondly, the MACD is also on the brink of initiating a bearish crossover. If the bearishness increases (red bars’ presence increases), SHIB could face the same fate as its predecessor, DOGE, and witness a decrease in price.
This article was originally posted on FX Empire
