Shiba Inu (SHIB) tests a decisive technical line for the remainder of the week. Below $0.062 in Dogecoin, it indicates a continuation of the downtrend. Cryptocurrency analyst Akash Girimath identifies levels that meme coin bulls need to defend to stave off further declines.
SHIB price under siege by hurricane dollar
Shiba Inu (SHIB) is in distress as investors expect a bearish weekend after a bloody weekend. This week looks set to repeat the scenario from last week, given the apparent lack of attractive entry levels, sound trading plans put forward, and the substantial headwinds of inflation holding on. The biggest fear for global markets is the wild strength of the dollar, which is pulling investors aside for now.
Shiba price will reach a critical crossroads if it closes below the red descending trendline tonight. In such a case, there is a risk of another drop to $0.00000600 with monthly support level S1 and last year’s low. The analyst does not expect a possible cryptocurrency rally given the seasonality. A 30 percent drop is among the more realistic scenarios.
But does SHIB close above the descending trendline? If that happens, it will be another chance for meme coin bulls. In fact, according to the analyst, the bulls will covet $0.000001000. Technically speaking, this is fit for a retest. It will also bounce off the red descending trendline. The RSI also supports such a recovery as it is oversold. Thus, there is a chance to make up for some of the losses incurred on Sunday. Depending on the week, if the dollar eases, the analyst says that the price of SHIB could bounce back to $0.00001209.
Dogecoin price poised for more losses
On the other hand, Dogecoin broke the descending triangle formation that has been forming since May 12. Additionally, extreme selling pressure pushed DOGE to the current level of $0.056 after $0.062. Due to the selling pressure in the market, altcoins including Dogecoin price are falling uncontrollably. While DOGE is trading around $0.056, there is a high chance that this momentum will continue.
In such a case, there is a 17% risk of falling to the $0.046 support level. As Kriptokoin.com analysis includes, this support was a major launch pad that helped Dogecoin’s next 1,500% rise in early 2021. Therefore, market participants can expect marginal buyers to step in at this level and cauterize the bleeding.
Let’s continue with an interesting metric that supports the possibility of a stable support level. IntoTheBlock’s Historical Break Even Price Index is used to track the number of addresses with realized profit and loss and their change over time.
Currently this indicator shows that 42% of all investors who have bought DOGE since 2022 are ‘at a loss’. About 55% of the remainder is ‘in the snow’, but Dogecoin is at risk in this part if the price continues to drop.
Dogecoin does not have an invalidation thesis per se as it breaches the $0.062 support of the descending triangle. Hence, on a recovery above $0.062, its bulls will start to act again. The analyst says Dogecoin will reach $0.073 after a 16% climb.
