- Dogecoin clung to a support level while Shiba Inu bears found relatively more success
- Bearish pressure is expected to continue rising this week
Dogecoin [DOGE] and Shiba Inu [SHIB] both saw more than 15% losses since the early hours of the 14th of March. This came alongside weakness for Bitcoin [BTC] whose bulls were unable to defend the $70k level.
The price action indicated that the meme coins were headed for more losses, but the long-term trend remained bullish. Yet, investors and traders could be concerned about the possibility of a lengthy consolidation phase in the coming weeks and months.
The memecoins could see a deeper pullback
Source: DOGE/USDT on TradingView
The 12-hour Dogecoin chart showed that the $0.159 support level has been defended over the past week. The market structure remained bullish and would remain so until prices fall below the $0.126 level.
Yet, the RSI has trended lower in the past ten days and was close to falling below the neutral 50 mark at press time. This would indicate a shift in momentum in favor of the bears. The OBV also saw a minor dip in March, but nothing that could shift the trend downward.
The Fibonacci levels showed that the $0.1085, $0.129, and the $0.144 support levels would present buying opportunities upon a retest. Yet, investors must beware of a long consolidation phase that could follow the rapid gains that DOGE saw recently.
Source: SHIB/USDT on TradingView
Shiba Inu presented a similar outlook to that of Dogecoin. The interest in the meme coins has begun to fade, although sellers were not the dominant side yet. The RSI was at 48 at press time on the 12-hour chart.
A move below the $0.0000255 level would shift the market structure bearishly on the lower timeframes. This could see SHIB fall to the 61.8%-78.6% retracement levels. The OBV did not plummet dangerously which gave hope to the bulls.
Bulls should have a bullish outlook for SHIB on the higher timeframes but the possibility of a deep pullback could present a buying opportunity. The lower timeframes can also be assessed to understand when the bulls would be back in control.
On-chain selling activity peaked in early March
Source: Santiment
How much are 1, 10, or 100 DOGE worth today?
The two meme coins gained enormous amounts in late February- 382% for SHIB and 145% for DOGE. The dormant circulation saw a huge spike on on the 2nd of March for Shiba Inu, and the 6th of March for Dogecoin.
This signaled large token movements and possible selling pressure from profit-takers. The weighted sentiment of DOGE remained positive but Shiba Inu saw more neutrality on social media.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
