The cryptocurrency industry showed a sharp rise in market volatility after the Bitcoin halving, indicating increased buying and selling pressure in the cryptocurrency market. However, the memecoin category continues to show mixed sentiment, indicating uncertainty in future price action.
The category leader, Dogecoin, displays a negative trend. Meanwhile, the second largest meme coin, Shiba Inu, managed to record bullish convergence in the 1D time frame, raising investor concerns about their short-term investments in these tokens. Which memecoin should you stake this week?
Dogecoin displays bearish price action:
Despite the increasing market volatility, DOGE price formed an inverted cup and handle pattern in the 1D time frame, indicating a bearish outlook in the coming days. Moreover, it has lost 3.12% over the past day and 2.52% over 30 days, highlighting weak buying and selling pressure.
The technical indicator MACD is showing a continued decline on the chart, as its averages show a high probability of a bullish convergence this week. However, the 50/200 day EMA is indicating a bearish price movement, highlighting mixed sentiment in the cryptocurrency space.
If the market keeps Dogecoin price above the $0.155 support level, the bulls will regain momentum and get ready to test the $0.182 resistance level. Conversely, a bearish price action may pull the price towards the lower support level of $0.128 next time.
Did you know: DOGE, PEPE and FLOKI coins are ready for an extended bull run?
Shiba Inu price records bullish convergence!
The Shiba Inu memecoin showed a neutral trend during the first two months, indicating a weak start for this category in the cryptocurrency market. However, as the hype around memecoin increased, SHIB price broke through its resistance level and recorded a 3x increase over the next few days.
After facing rejection at the $0.00003950 resistance level, the bulls lost momentum and broke through the support level. Since then, the price of the Shiba Inu has traded between $0.000023 and $0.000030. Positively, the 50-day EMA is acting as support, indicating bullish strength in the cryptocurrency industry.
The MACD indicator is displaying a bullish green histogram in the chart, highlighting the growing buying pressure in the cryptocurrency industry. Moreover, the averages have succeeded in registering an upward convergence, indicating a bullish outlook for the memecoin in the coming period.
Read More: BONK and PEPE Break Resistance: Is the Memecoin Market on the Move?
If the bulls continue to gain momentum, SHIB price will prepare to test its resistance level at $0.000030 this week. However, a bearish reversal could cause the price to test its support level of $0.00002375.