While the wider crypto market has seen strong rebounds over the past few weeks, popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) seem to be lagging behind. Unable to break key resistance levels, doubts are emerging on whether these formerly high-flying tokens are too ‘late for the party’ in the current altcoin recovery.
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Shiba Facing Critical Support
After minimal price gains since October, SHIB has struggled to break above resistance around $0.00000084. Last week ended on a bearish note for SHIB, and this week has seen an additional 3% drop so far. With predominantly bearish short-term price action, SHIB risks losing the small 4% gains made earlier this week.
SHIB is now approaching critical support, which was broken on November 5th. Holding this support could mean a potential upside turn next week for SHIB. However, failing to hold could see the downtrend accelerate.
DOGE Breakout Could Spark Meme Rally
Dogecoin has faced similar challenges breaking above stubborn resistance at $0.076. Despite a bullish weekly close last week, DOGE has dropped the last two days. However, DOGE appears to be breaking out of a descending trend channel.
With DOGE returning to retest the top of this channel, a successful weekly close above it could indicate a trend reversal. This could spark a more sustained rally for DOGE after months of rangebound price action.
A breakout for Dogecoin could have ripple effects across other meme-based cryptos. As one of the most prominent faces of this subset of altcoins, a DOGE breakout could signal that meme mania is back in play more broadly.
Meme Coins Late to the Party?
While major altcoins like Ethereum, Cardano, Chainlink, and Avalanche have posted 20-40% gains in recent weeks, SHIB and DOGE have failed to participate significantly. This raises doubts on whether the glory days are behind these former high-flyers.
his is not the first time meme coins have joined the bull run late. The last crypto bull market started around 2020, but DOGE did not spike wildly until April 2021. SHIB had a similar delayed surge in October 2021. We could see history repeat itself in this cycle too.
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However, crypto markets remain turbulent and fast-moving. The potential DOGE breakout demonstrates conditions could quickly shift in favor of meme coins if technical resistance gives way. As past vertical rallies show, meme token prices can move violently and without much warning. It may be too early to count them out completely despite recent underperformance.
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