SHIB AND DOGE FORECASTS
Analyst Akash Girimath says that a rebound in Shiba ınu (SHIB) price could begin and there are on-chain metrics that could lead to a rise in Dogecoin (DOGE). We start with the price movements that the analyst, who conveyed the critical levels in both memecoins, detected in the SHIB trend…
SHIBA INU (SHIB) TAKES ANOTHER HIT IN UPTREND
SHIB price is down about 33% since the August 17 high of $0.00000975. This decline broke through multiple support barriers and eventually found support around the $0.0000654 demand barrier. Although SHIB has started an uptrend, it may retest the $0.00000625 base in some cases. Afterwards, if the bulls can close a decisive daily candle above $0.00000811, it will pave the way to retest the midpoint of the trading range at $0.0000871, which is roughly a 25% increase from the current position. In the continuation of the uptrend, traders can expect the uptrend to continue until they mark the highly probable reversal zone ranging from 0.0000107 to 0.00000955. Testing the 70.5% Fibonacci retracement level at the $0.0000101 supply barrier would be the best-expected best-case scenario for Shiba ınu price.
Conversely, if the resulting rally fails to break the $0.00000727 and $0.00000759 resistance barriers, it will indicate a weakness among the buyers or that the sellers are in control. A breakdown of the $0.00000625 support level will create a lower low and invalidate the bullish thesis. In such a case, SHIB price could move into the lower range of $0.00000519.
AKASH GIRIMATH EXPECTS EXPLOSIVE GROWTH AT DOGE
Dogecoin price has dropped about 22% over the past 16 days, indicating that a reversal is likely. The primary reason for the start of an uptrend is the demand zone stretching between $0.262 and $0.281. This barrier was an important resistance barrier in late June and a major support level from early May to mid-June. Therefore, investors can expect a bullish response that moves DOGE as buyers bounce back. The $0.328 level is the first level of resistance that the bulls will face. Following this, Dogecoin price will retarget $0.367, a roughly 35% rally from the current position. While an uptrend towards $0.40 is likely, this momentum could be short-lived.
WHAT DO ON-CHAIN METRICS SAY FOR DOGECOIN?
GIOM model shows a relatively minor resistance zone, supports this uptrend at $0.367. The roughly 25,220 addresses that bought 3.15 billion DOGE at an average price of $0.296 are the only cluster of “underwater investors” to keep the Dogecoin price from rising. However, this area is relatively small compared to its surroundings. Therefore, analyst Akash Girimath expects a potential increase in buying pressure to easily break through these barriers and create a barrier in the next supply areas.
While techniques and transaction data point to a bullish outlook, there has been a decline in the number of new addresses joining the Dogecoin network. This metric is down 16% from 23,830 last month to nearly 20,000 users. Although this change is still negative, it is not a large enough number to spoil the bullish outlook, according to the analyst. Therefore, investors are advised to take a close look at this metric.
Finally, a jump to $0.367 seems reasonable according to technical analysis by Akash Girimath. The sellers will gain control if the bears breach the lower trendline of the demand barrier at $0.262. It could also indicate that the Dogecoin price could drop further. Moreover, a break of the $0.240 support level will invalidate the bullish argument for DOGE and in some cases trigger a drop to $0.230.