Despite the ongoing conflict between Russia and Ukraine, financial markets around the world are showing signs of recovery. The crypto market shows no signs of behaving otherwise, with Bitcoin (BTC) prices retesting and sustaining above the $45K mark.
In terms of market capitalization, the cryptocurrency market has remained stable at around $2 billion, rising to $2.15 billion in the last week. However, the recovering market indicates a significant change in dominance, as BTC dominance drops to 40%, while Ethereum is half a percentage away from 20%.
Coming back to the meme coins, the community-driven tokens show signs of a recovery this week and a significant shift in underlying sentiments. In short, a bullish signal has been lit and the important question remains; should you invest in the meme coin sector?
Let’s take a look at the two most significant meme coins to keep an eye on.
Dogecoin (DOGE)
Dogecoin prices encounter support at the support trendline of the falling channel after a 20% retracement in early March. Post-retracement, however, Doge buyers regained trend control resulting in a 30% price increase last fortnight.
DOGE price action shows a rounding bottom breakout, but the rally struggles to surpass the resistance trendline, forming a short falling channel to retest the breakout. However, the post-retest uptrend could exceed the $0.15 mark.
Struggling between the 50 and 100-day EMAs, the meme coin forms a consolidation range. However, the breakout could result in a promising reversal in EMAs and possibly bring bullish crossovers.
The RSI slope indicates a bullish trend continuation despite multiple rejections from the 70% mark. Nonetheless, the RSI line defends the 14-day average and the 50% mark. Hence, the indicator remains bullish on the meme coin.
In short, the DOGE technical analysis underlines the increased chances of trendline breakout with the successful rounding bottom retest.
Shiba Inu (SHIB)
SHIB coin prices declined 20% due to the rejection from the 50-day EMA, but buyers softened the drop to $0.00002150, reigniting the uptrend and pushing the price up 25%. Furthermore, the uptrend breaks above the resistance trendline and displays a post-retest recovery implying a possible bullish reversal.
SHIB prices show a lower price rejection in the daily candles, indicating a surge in underlying bullishness.
The bullish growth shows a turnaround in the 50-day EMA, assisting to bypass the death cross with the 200-day EMA. The market price struggles to surpass the 100-day EMA, but this portends an increase in buying pressure.
The RSI slope resumes the uptrend with a retest of the trendline breakout. Furthermore, the 14-day SMA shows a curved turnaround surpassing the halfway mark, reflecting a surge in underlying bullishness.
In summary, the SHIB/USDT chart highlights the retest as an excellent buying opportunity for traders with the target above the $0.000030 mark.
The SHIB prices exhibit lower price rejection in the retest candle from the resistance trendline, indicating that buyers have regained control and are pushing the prices up. Furthermore, the probability of a 50-day and 100-day EMA bullish crossover with rising prices signals an increase in buying pressure. As a result, the rout rally is likely to hit the $0.000032 mark.
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