Despite Grayscale’s recent victory over the SEC driving a significant rise in Bitcoin and the cryptocurrency market, these gains have been wiped out. The SEC’s decision to delay approval of a spot BTC ETF sparked a market-wide sell-off, and meme coins like Shiba Inu and Dogecoin have not been spared. After a short-lived bullish rally, both tokens have returned to their pre-peak price levels, raising concerns as they are now trading within a bearish channel pattern.
SHIB and DOGE are flashing downward volatility
There are many concerns in the meme coin ecosystem due to recent allegations of back pull around Pepecoin. However, Dogecoin and Shiba Inu are still attracting investors’ attention as capital flows to these tokens due to Bitcoin’s increased volatility following recent impactful developments.
Dogecoin traders are optimistic about the token’s future prospects, especially as Elon Musk’s Platform X shows signs of adopting crypto payments. At the same time, Shiba Inu is energizing its community with positive developments and is setting new records daily with the launch of Shibarium. However, despite these encouraging signs, there are concerns about a possible slump for both meme coins in September.
Shiba Inu (SHIB) Price Analysis
Analyzing the Shiba Inu 4-hour price chart, bears are currently trying to break below the uptrend line of the symmetrical triangle pattern. Despite bullish pressure, there is growing sell dominance among traders amid the market sell-off. At the time of writing, the price of SHIB is trading at $0.0000079, down more than 2.5% in the past 24 hours.
If the bulls fail to defend the current downtrend below the pattern, it could be a signal that bearish elements are gearing up for a return. In this scenario, the price of SHIB could move towards the next $0.0000073 support.
However, a robust recovery from the current down channel could indicate that buyers are defending declines, raising the likelihood of a rally above the EMA50 trendline. If this happens, the price of SHIB could potentially break out of the triangle pattern and target a trade level above USD 0.00001.
Dogecoin (DOGE) price analysis
Recently, Dogecoin reached its 20-day EMA valued at $0.064, although it is proving difficult for the bulls to keep the price above this mark. Currently, the price of DOGE is trading at $0.063, down nearly 4.2% from yesterday’s price.
If the price experiences a drop from where it is now, it would indicate that sellers are willing to hit bearish targets. In that case, DOGE price could consolidate above USD 0.06.
Conversely, if the price holds without losing much value, it could mean that bullish momentum is still strong. This scenario could set the stage for a possible rise towards the USD 0.068 breakdown level.