Cryptocurrencies are sort of strange themselves, while meme coins are even stranger and behave as such. The Shiba Inu coin which is a copy of Dogecoin is even more irrational. Although, they owe some of this to the Tesla founder Ellon Musk, who makes sporadic comments on meme coins, using dogs as well. Their surge was really quick, but it didn’t last long and they haven’t been able to recover since, particularly Shiba.
Shiba Inu Prediction – SHIB/USD Bouncing Inside the Range
Shiba Inu bouncing inside the range since May
The Shiba Inu coin Crashed down back in May, falling into the range between $0.0000095 at the top and $0.0000058 at the bottom. The price has been bouncing between this range for several months now, which is a good range to trade in itself, so we are preparing to buy Shiba coins when the price gets to the bottom of the range where it is headed after failing at the resistance again.
Sellers pierced the support zone earlier this month, pushing the price down to $0.0000051, but there was no breakout, as we explain in our 2021 Shiba Inu forecast. The daily candlestick didn’t even close below the support level, so it was a fakeout, flushing off some weak stops. After that the price bounced back up pretty fast in the first wave of buying, showing that there’s strong buying interest down at the support, so as long as the range-bound trading continues, selling higher and buying lower is the way to trade Shiba Inu coin.
Dogecoin Prediction – DOGE/USD Breaking Below MAs
The 20 SMA has been broken on the weekly chart
Dogecoin is looking increasingly bearish, after the bullish momentum in August lasted until the middle of that month, while most of the cryptos kept climbing until the middle of September and some even later. The crash in May brought the price down from $0.74 to $0.09, pushing DOGE/USD below the support around $0.17 and the 20 SMA (gray). But, the price pulled back up that same day, so there was no close and no break of the support or the 20 SMA.
This moving average held as support on the weekly chart for several days and the price bounced off of it. But, the price formed a doji by the middle of August, which is a bearish reversing signal and it turned down after that. The 20 SMA was eventually broken last week, so the bearish momentum remains, more so than in the crypto market. So, unless we see a good bullish reversing pattern here, we’re not buying Dogecoin.
