Dogecoin (DOGE) and Shiba Inu (SHIB), two prominent meme cryptocurrencies, recorded significant downturns on Tuesday, with DOGE declining by 4% and SHIB falling 2%. Both digital assets experienced accelerated downward movements following breaches of crucial support thresholds, indicating an escalation in selling pressure among holders and traders.
For Dogecoin, the breach below the psychological and technical $0.10 level marks a critical setback. Technical analysis shows bearish momentum confirmed by the Supertrend indicator at approximately $0.11958, situated above current pricing, signaling prevailing downward pressure. Complementary to this, the Parabolic SAR—another technical tool—registers resistance at about $0.10544, also above the recent prices, reinforcing the pattern of seller dominance.
With the price advancing toward the lower edge of its established channel, signs point to intensified selling activity pushing DOGE lower. Horizontal support is identified near $0.08, a price level where historical buying interest emerged previously. Despite this, the recent steep decline suggests a strong momentum that could overcome this support point unless buying interest intensifies.
Market data from Coinglass indicates a 1.02% decrease in open interest to around $962.62 million, accompanied by a sharp decline of 48.58% in options trading volume. This trend evidences a decline in active trading and the withdrawal of speculative positions. A related metric, the Binance long/short ratio, stands at 2.1756, indicating a substantial number of long positions that are currently at a loss due to the recent price drops.
To reverse the current bearish trend, Dogecoin would need to recapture the $0.10 price point and break above the Supertrend resistance level near $0.12. The immediate resistance corridor is bracketed between $0.10 and $0.105. Until DOGE exceeds these thresholds, expectations lean toward further pressing down toward the $0.08 support. Should this support not hold, the price could decline further, potentially testing $0.07 or levels below.
Turning to Shiba Inu, technical indicators portray a similar bearish picture. SHIB is currently trading close to its lower Bollinger Band at approximately $0.00000552, which typifies intense selling pressure. The Supertrend indicator remains bearish, situated at $0.00000753, while the upper Bollinger Band at $0.00000837 highlights how far the token has fallen from recent highs.
The presence of a descending trendline acts as a ceiling restricting upward movement, with price rallies consistently rejected at this technical resistance throughout the ongoing downtrend. Recent price movements illustrate a capitulative phase, breaking through previous support zones, underscoring the intensity of the sell-off.
Efforts to reduce supply through token burns have had limited impact on halting the decline. Notably, the burn rate experienced a 65.52% increase over the 24-hour period, amounting to 2.5 million SHIB tokens removed from circulation. Despite this, the circulating supply remains massive at 585.45 trillion tokens. While burns offer a distant long-term mechanism to support price, they have not prevented the current technical deterioration.
Immediate horizontal support for SHIB can be found in the range of $0.00000550 to $0.00000600. If prices penetrate below this support zone, further declines toward $0.00000500 or lower levels are possible. For the token to begin reversing course, a recovery above $0.00000700 and a break beyond the Supertrend resistance would be essential.
Overall, both Dogecoin and Shiba Inu face considerable technical challenges following the breakdown of key support areas and indicators signaling continuing bearish momentum. Reduced trading activity and adverse long/short positioning ratios add to the concerns about near-term stability. Recovery hinges on reclaiming defined resistance levels, with lower support floors providing potential, though uncertain, stopping points amid prevailing market pressures.