- Recent market data and technical analysis suggest that the price of Shiba Inu may be setting up for a potential upward move.
- In contrast, Dogecoin appears to be struggling with key price resistance levels and showing less positive momentum in some trading indicators.
Dogecoin (DOGE) and Shiba Inu (SHIB), two well-known memecoins, have been trading relatively flat recently after a slight dip. However, new information from trading charts and data about bets placed on their future prices shows different pictures for the two coins, with Shiba Inu showing more potential for recovery.
Analyzing the Outlook for DOGE and SHIB
Dogecoin is currently trading at $0.2288, up 0.15% in the last 24 hours. It has stayed near this price for several days, and is holding above a support level at $0.20, with the 200-day moving average providing support nearby.
However, the price chart for DOGE shows a pattern that often suggests a price drop, known as a double top, near the $0.25 level. This pattern is reinforced by a long-standing line of resistance that the price has struggled to break since December. If DOGE’s price falls below a key level around $0.2145, it could lead to further price declines, potentially testing a lower point seen in early May around $0.1667.
Technical indicators also show signs that the upward momentum for DOGE is weakening. Despite these cautious signals, if Dogecoin manages to break above the long-standing resistance line, it could then aim for the $0.30 level, which previously acted as a significant support point.
Shiba Inu, meanwhile, is trading around $0.00001452, down 0.64% in the last 24 hours. Like DOGE, it has also been consolidating but is holding above important support levels around $0.000014. Unlike DOGE, SHIB does not have a similar long-term downward-sloping resistance line currently holding its price back.
Although SHIB saw a price drop recently, it is holding above a level that it had previously broken above, suggesting a potential bounce back.
Based on past price movements, potential resistance levels for SHIB to watch if the price rises are around $0.00001590, which lines up with a technical level and the 200-day moving average, then potentially $0.00001914 and $0.00002175.
Looking at the derivatives market, there’s a growing positive feeling for SHIB. The total value of open positions in SHIB (Open Interest) has increased, showing more trading activity and interest. A measure called the funding rate, which reflects the cost of holding long positions, also shows a bullish bias for SHIB.
For DOGE, the opposite is happening in this market. The total value of open positions has slightly decreased, and data on where traders’ positions were closed due to price movements suggests that more traders who were betting on long positions faced losses compared to those betting on short positions.
A comparison of traders expecting the price to go up versus down (long/short ratio) also shows a clearer bias towards expecting DOGE’s price to fall.
Based on these signals, the technical outlook and the activity in the derivatives market currently suggest that Shiba Inu has a stronger potential for a positive price movement compared to Dogecoin in the near term.