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Why Dogecoin (DOGE) and Shiba Inu (SHIB) Prices Both Face Trouble

2 mins
Updated by Geraint Price
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In Brief

  • DOGE has broken down from an ascending parallel channel.
  • There is horizontal support at $0.053.
  • SHIB is trading inside the $0.000012 support area.
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Dogecoin (DOGE) and Shiba Inu (SHIB) have both broken down from their corrective patterns. A breakdown from the current horizontal support levels would likely lead to new yearly lows.

DOGE

DOGE had been moving upward inside an ascending parallel channel since June 14. The increase led to a high of $0.089, coinciding with the resistance line of this channel.

However, the price was rejected by the resistance line and has been falling since. Afterward, DOGE broke down from the channel on Aug. 26. 

Beside the breakdown, DOGE showed weakness by falling below the $0.077 area and failing to reach it in the possibility of a retest (red circle).

On Tuesday, Tesla CEO Elon Musk tweeted that the firm’s new Cyberwhistle could only be bought with DOGE. While the whistle quickly sold out, it appears to have had little effect on the price, failing to initiate an increase.

Besides the price action, the readings from the daily RSI are bearish. The indicator has fallen below the 50 line and broken down from its previous ascending support line (green line). Both of these are considered signs of a bearish trend.

So, the most likely scenario would have DOGE falling to the $0.053 support and potentially heading even lower.

DOGE Channel Drop
DOGE/USDT Chart By TradingView

SHIB

SHIB had been trading inside an ascending parallel channel since June 18. While doing so, it managed to reach a high of $0.000018 on Aug. 14.

The high validated both the resistance line of the channel and the $0.0000175 horizontal resistance area (red icon). 

However, SHIB has been falling since and broke down from the channel on Aug. 26. Afterward, it initiated a bounce, which however only served to validate the channel as resistance once more.

Similar to DOGE, the daily RSI has broken down from its ascending support line and is now below 50. Therefore, further downside is the most likely scenario.

Currently, SHIB is trading inside the $0.000012 horizontal support area. If it breaks down, the final support prior to the yearly lows would be at $0.00001.

SHIB Movement
SHIB/USDT Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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