Dogecoin and Shiba Inu, two prominent meme cryptocurrencies, currently exhibit signs of ongoing downward momentum characterized by persistent outflows and limited recovery strength. This trend raises concerns about potential worsening of selling pressure, especially if essential price support levels are breached.
Dogecoin’s Fragile Technical Setup
Dogecoin is trading near the lower boundary of its Bollinger Bands, approximately at $0.08727, an area that generally indicates oversold market conditions. However, in the context of strong downward trends, asset prices can remain stuck near these extremes for extended durations without meaningful reversals. The Supertrend indicator, currently at $0.12154, is well above the present trading range, confirming a bearish stance.
Recent market data reveals that Dogecoin experienced negative spot netflows totaling about $9.5 million as of December 9th. This outflow reflects continued distribution pressure by investors.
Critical support for Dogecoin lies within the $0.08727 to $0.09 range. Should this hold, it may provide a foundation for the price to stabilize or rebound. However, a breakdown below this level opens the door for further declines, with the next substantial support anticipated around $0.08 or possibly lower. Should Dogecoin's price fall beneath $0.08727, it could trigger panic-driven selling pushing prices towards $0.07 to $0.08, and in a worst-case scenario down to approximately $0.06, which corresponds to the lowest area in the current descending channel.
The current environment suggests that even any rallies are likely to encounter immediate resistance near $0.10. Beyond that, interim obstacles appear at $0.11137, coinciding with the middle Bollinger Band, and $0.12154, aligning with the Supertrend indicator. For Dogecoin to initiate a meaningful reversal, it needs to surpass the key resistance zone between $0.12 and $0.13.
Shiba Inu Confronts Breakdown Risk Amid Volatile Trading
Shiba Inu is consolidating its price just above a recent panic-driven low near $0.00000589. All exponential moving averages (EMAs) stand above its current price, underscoring a bearish short-to-medium trend. These EMAs include the 20-day EMA at $0.00000691, the 50-day EMA at $0.00000754, the 100-day EMA at $0.00000832, and the 200-day EMA at $0.00000975.
Despite a notable acceleration in the token burn rate, reflected in a 36.43% increase with approximately 1.53 million tokens burned over a 24-hour window, Shiba Inu's price remains weak. This spike in burn activity, however, appears to be driven by irregular wallet-based burns rather than consistent, sustained acceleration, limiting its immediate influence on price action.
The psychological support level at $0.000006 is critical for Shiba Inu’s market stability. A decisive break below this and the recent low of $0.00000589 would leave minimal support structures until the $0.000005 mark, and potentially further down near $0.000004. This absence of a clear support framework underlines the heightened risk of significant price deterioration.
The Relative Strength Index (RSI), presently measured at 35.95, implies weak price momentum but does not signal an extremely oversold condition. The only minor 1% price uptick since recent lows points more towards a fleeting dead cat bounce rather than a substantive recovery.
Summary and Outlook
The technical landscape for Dogecoin and Shiba Inu suggests an environment where selling pressure persists, and price rallies face substantial headwinds. The integrity of immediate support levels is crucial to preventing sharp declines rooted in panic selling. For Dogecoin, a sustained breakout above the $0.12-$0.13 range is necessary to shift market sentiment towards recovery. Meanwhile, Shiba Inu’s vulnerability below the $0.000006 threshold signals the risk of accelerated declines given the absence of lower support and weak market momentum.
Investors and market participants should closely monitor these support and resistance zones, as breaching them may influence the short-term trajectory of these tokens considerably.