While major altcoins like Chainlink (LINK), Telegram Open Network (TON), Ripple (XRP), Cardano (ADA), and Solana (SOL) have been basking in the glory of nice price gains in September, biggest meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have lagged behind.
The question that looms large is: Should this be a cause for concern for DOGE and SHIB investors?
What you'll learn 👉
The Altcoin Landscape
For context, altcoins like LINK have seen a nice 15% surge in their prices. In contrast, DOGE and SHIB have only managed a meager 1.5% and 0.8% increase.
This divergence in performance raises eyebrows and warrants a closer look at the technicals driving these meme coins.
Dogecoin: Mixed Momentum
Dogecoin recently broke out of a Falling Wedge pattern, catapulting its price to $0.085—a 30% gain. However, the coin has since retraced below its 200-day moving average of $0.08 and even dipped below the $0.07 support level. This has effectively wiped out all previous gains.
The Moving Average Convergence Divergence (MACD) line is above the MACD Signal Line, indicating bullish momentum. However, the Relative Strength Index (RSI) is below 45, suggesting bearish sentiment. This mixed momentum creates a murky outlook for the coin.
Source: altFINS – Start using it today
The nearest support zones are at $0.060 and $0.053, while resistance is found at $0.070 and $0.100.
Shiba Inu: Bulls Might be Taking Control
Much like Dogecoin, Shiba Inu also experienced a bullish breakout from a Falling Wedge pattern, reaching a price of $0.085. Unfortunately, it too has fallen below its 200-day moving average and the $0.07 support level.
The MACD line is bullish, being above the MACD Signal Line, but the RSI is below 45, indicating bearish sentiment—another case of mixed momentum.
Source: CoinStats – Start using it today
Shiba Inu finds its nearest support zones at $0.060 and $0.053, with resistance at $0.070 and $0.100.
Shiba Inu has shown some resilience with support at $0.0000070, making a higher low—a bullish sign. The daily MACD made a bullish cross last week, suggesting that the bulls might be taking control. However, any failure to break key resistance could dampen this optimism.
Conclusion
The underperformance of DOGE and SHIB in comparison to other altcoins is a worrying sign for investors in these meme coins. Both coins are currently in a downtrend across all time horizons, and their mixed momentum indicators make it difficult to predict a clear path forward.
While there are signs of potential bullish reversals, they are yet to materialize into significant gains. Investors should keep a close eye on key support and resistance levels and set price alerts to navigate through these uncertain times effectively.
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