Dogecoin, Shiba Inu look ready to be tracked

Central thesis

Dogecoin is up nearly 47% in the past ten days.
Shiba Inu’s market value has also risen by more than 55%.
These meme coins now appear poised to retrace ahead of higher highs.

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Meme coins Dogecoin and Shiba Inu appear to have hit important supply zones that could trigger a correction.

Dogecoin and Shiba Inu encounter resistance

Dogecoin and Shiba Inu are starting to show signs of weakness after posting significant gains over the past ten days.

Despite the overall bearish market, meme coins appear to be bucking the trend. DOGE’s market cap has risen nearly 47% since June 18, while SHIB has risen more than 55% over the same period. Nonetheless, a certain technical indicator suggests that both coins are primed for increased profit-taking.

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Tom DeMark (TD) Sequential is currently offering sell signals on the daily charts of Dogecoin and Shiba Inu. The bearish pattern developed into a green 9 candlestick, indicating a correction of 1 to 4 daily candlesticks.

The trading history favors the bearish outlook for Dogecoin as resistance is more important than support. About 12,600 addresses previously purchased over 7 billion DOGE at an average price of $0.079. Any signs of weakness could prompt these market participants to exit their positions, which will increase the downward pressure behind the meme coin.

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A potential surge in sell orders could confirm the expected downside for the TD setup as the most important buy zone is at $0.064. Here, more than 8,000 addresses hold 2 billion DOGE.

Likewise, Shiba Inu faced strong resistance at $0.000012 after 6,280 addresses bought over 31 trillion SHIB. These market participants may try to sell their tokens to break even on the rise, limiting the ability of the price to continue higher.

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Notably, the most critical support area for the Shiba Inu is $0.000010. If the previous level is broken, another correction to $0.000009 is likely.

With the odds appearing to favor the bears, traders will need to keep an eye on overhead resistance for signs of failure. If Dogecoin’s daily close can exceed $0.079, it could rally to $0.089. Meanwhile, the Shiba Inu would need to break above $0.000012 to raise the odds of a rebound to $0.000015.

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Written by

Jake Smith

He is the editor of Eragoncred. Previously, he was editor-in-chief of Eragoncred and a financial industry reporter. Jake has spent most of his career as a Digital Media journalist and has over 10 years of experience as a writer and editor.