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

14 September 2022, 13:30 GMT+0000
Updated by Geraint Price
14 September 2022, 13:31 GMT+0000
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.

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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.

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

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