Despite Dogecoin and Shiba Inu experiencing a noticeable recovery in the past week following the Federal Reserve’s decision on interest rates, their on-chain activities remain bearish. The meme coin market is currently struggling with reduced investor interest as the address counts for both Dogecoin and Shiba Inu continue to fall. This trend could pose challenges for these leading meme coins in the coming hours.
Investors Show Less Interest in Dogecoin and Shiba Inu
Data from Coinglass indicates that Dogecoin witnessed a total liquidation of nearly $661K in the last 24 hours. On the other hand, Shiba Inu witnessed a total liquidation of nearly $163K. In both cases, sellers liquidated most of their positions as buyers aim for a break above immediate resistance channels.
Also read: The Only Memecoin Investment Strategy You Need: Top Altcoins Revealed!
Though both the meme coins surged by nearly 8-10% in the last seven days, there is a lack in network activity. According to IntoTheBlock, Dogecoin’s total address count dropped from the peak of 91K to 68K. Interestingly, the active address count was the one that made significant decline as it dropped from 54K to 42K.
Usually, the number of active addresses is used to gauge the health of a cryptocurrency. Having more active addresses indicates that more users are engaged and the network is doing well. On the other hand, fewer addresses could suggest that interest is decreasing or usage is going down.
IntoTheBlock further indicates that Shiba Inu also witnessed a drop in total address count. The metric dropped from 5.7K to a recent low of 4.5K. This is a sign of low confidence in the meme coin market.
DOGE Price Analysis
Recent trends in Dogecoin have formed a bullish pattern, with buyers pushing the price above key resistance levels. DOGE price has emerged from a long bearish period, climbing from around $0.09 to a high near $0.11. Currently, Dogecoin is trading at $27.47, reflecting a slight increase of 0.4% over the last 24 hours.
Dogecoin has surpassed the 23.6% Fibonacci retracement level and now sits near the EMA20 trend line, aiming for bullish targets. It is crucial for buyers to hold above the declining trend line to avoid a potential fall back to the $0.09 support.
With the RSI indicating a reading above the midpoint, there’s room for a slight upward adjustment in DOGE price. Staying above the 20-day EMA could lead to a rise above $0.12, potentially initiating a rally towards $0.14.
Shiba Inu Price Analysis
SHIB price surged toward $0.000014 level and buyers are now aiming for a push above immediate Fib level. The SHIB/USDT pair is poised to reach $0.000016, where it may encounter stiff resistance from the bears.
A sharp decline from this level could lead to several days of sideways trading. The initial support is located at the moving averages, followed by support at $0.000013. If buyers hold momentum, the price might surge toward $0.00002.
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