- *Dogecoin and Shiba Inu consolidate at crucial support levels after Friday’s pullback.*
- *Derivatives market traders show a bullish bias for SHIB,*
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* ut sentiment declines for DOGE. ***Technical outlook signals a post-retest reversal chance for SHIB, while DOGE struggles with a long-standing trendline.*
Last two cryptocurrencies have been witnessing tight price-range trades with a slight decrease of 1% today. Even as interest in meme coins dries up in almost a week’s time, Shiba Inu is hinting at resurgence from sharply bullish derivatives activity coupled with technical analysis. On the contrary, Dogecoin seems to be languishing and failing to make a clear direction.
Shiba Inu eyes bullish reversal, DOGE faces bearish trendline
Dogecoin has been just hanging out lately, around $0.2243. The last four days brought with them Doji candles describing an indecisive market that, nonetheless, held steady. What is positive? Doge has maintained that stubborn will to stay above $0.20 as its support line. In the superhero movie of Dogecoin, the 200-day EMA is the sidekick at $0.2178, which offers a little bounce when trouble arises. Either a rest before the next big jump or maybe Dogecoin is just catching its breath?
There goes DOGE, from a dog bark into a muttering whimper. A breathtaking double-top formation has set up, potentially suggesting the subservient price plunge of the meme coin. At a mark of around $0.25, DOGE is still fighting against a stubborn supply zone of sellers and a resistance trendline that has been in place since December. A vital thing about this price is $0.2145. If DOGE drops below the neckline, hold your breath – here comes a big correction.
The MACD just shouted “SELL!” A bearish cross below the signal line and strong red histogram action do not augur well. To add insult to injury, the RSI has backed out of overbought territory and is now dragging sideways near the midline of 55. There is no strength left with the bulls.
DOGE/USDT daily price chart. Source: Tradingview
Price chart of dogecoin flashing red while technical indicators paint the picture for a dusty plunge. Traders might separate themselves from Dogecoin when this price dips beneath the critical $0.2145 neckline, potentially sending this puppy back to claw at lows of $0.1667 witnessed several months ago. Watch this level closely, as Dogecoin may just have its fate resting there.
However, a potential trendline breakout could put the $0.30 level, a crucial support turned resistance for DOGE, on bullish radars.
Even at its humble price of $0.00001439, Shiba is in tight consolidation. It is gently bouncing above its 50-day EMA ($0.00001412) and hanging barely above the $0.000014 support level; it seems SHIB might be holding its breath. The good thing is the absence of a bearish trendline, which means the skies are at least clear from storms for SHIB at the moment.
Striving to burst out of the $0.000014 trenches instilled hopes for a trend turnaround but fell short of the $0.000017 peak. The retreat, due to market tremors, turned bearish, resembling what Dogecoin went through. Still, there remains some hope as the price action stubbornly hovers above the former resistance; hence, it could act as a sling after this critical retest.
SHIB/USDT daily price chart. Source: Tradingview
A fascinating story developed between December and April on the crypto charts. From the high of $0.00003285 to the low of $0.00001066, the golden ratio might have been cast forward to lay a potential avenue. The key battleground awaits at $0.00001590. Here, the 23.6% Fibonacci retracement joins hands with the 200-day EMA to forge an important zone of resistance. Should the bulls prevail, then the Fibonacci levels stand with an upright target of $0.00001914 (38.2%) and $0.00002175 (50%), in the next scenes of this crypto drama.
Bullish bias in SHIB derivatives
Shiba Inu’s pulse is quickened! The technical tea leaves suggest a bullish comeback, and the roaring derivatives market of the same spirit simply cannot be ignored. The open interest on SHIB has exploded by 1.22% to a whopping $208 million-there is a real frenzy in the trading. But then comes the kicker: funding rates keep rising up to 0.0090% and what they reveal is quite unequivocal: the bulls are going all-in with their Doge-killer bets. Buckle up; it’s going to be a bumpy ride.
Shiba Inu derivatives data. Source: Coinglass
However, DOGE’s open interest is down by 0.14% to $2.64 billion, with the OI-weighted funding rate remaining stable at 0.0095%.
Dogecoin derivatives data. Source: Coinglass
Dogecoin bulls are feeling intense heat. Within the last 24 hours, liquidations have wiped out $3.36 million in long positions alone, erecting a rather massive barrier as compared to just $1.39 million in shorts. On the other hand, Shiba Inu is witnessing mere $190K worth of long liquidations against $133K for shorts. These could be the dog days for Dogecoin longs, or just a blip.
SHIB long-to-short ratio chart. Source: Coinglass
Shiba has now seen its battlefront shift. Three straight days of bulls charging and building long positions put them around 49.82% of the arena, with the taker buy/sell volumes backing the assertion. The long to short ratio is hanging by a thread at 0.9928; a near full standstill promoting a potential bursting forth-but whom does it favor?
DOGE long-to-short ratio chart. Source: Coinglass
Dogecoin’s tail is angling very slightly lower. Alternate formulae saw the level drop to 0.885 yesterday as bears aggressively piled on the short side, surrendering 53.05% of the open interest. Such an unyielding drop-on-the-bear trend in Dogecoin derivatives might just open the spotlight to Shiba Inu this week.
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