- DOGE stalls at $0.06692 resistance and retreats to the $0.06309 support level.
- SHIB’s price dip contrasts with soaring Shibarium adoption, with I million wallets in sight.
- Oversold conditions in DOGE and SHIB signal a potential turnaround.
On August 31st, the US Securities and Exchange Commission (SEC) postponed approving spot Bitcoin ETFs, prompting a negative trend in the cryptocurrency market. As a result, Dogecoin (DOGE) followed suit, dropping from a 24-hour high of $0.06692 to an intraday low of $0.06309 before finding support.
DOGE was trading at $0.06356 at press time, down 4.47 % from its intra-day high. Despite a decrease in market capitalization of 4.56% to $8.95 billion, the 24-hour trading volume of $217.09 million was up 20.29%.
DOGE/USD 24-hour price chart (source: CoinMarketCap)
A 24.07 reading on the stochastic RSI indicates that DOGE is oversold and ready for a possible comeback. This degree of oversold conditions indicates the selling pressure on DOGE is reaching exhaustion, which might result in a price reversal. Furthermore, the rise in trading volume implies increased interest and activity in DOGE, which might contribute to a potential comeback.
The MACD line is in the negative sector, with a value of -0.004, reflecting the probability of a DOGE comeback. The negative reading indicates that there has been significant selling pressure, but if the MACD line begins to move toward the positive zone, it might signal a change in momentum and a possible price gain.
DOGE/USD price chart (source: TradingView)
Shiba Inu (SHIB)
Shiba Inu (SHIB) has also witnessed a slump, with bullish efforts to counteract the bearish trend thwarted after failing to cross the $0.000008223 barrier. Consequently, SHIB saw a pullback to a 24-hour low of $0.000007905 before trading at 0.0000079711 at press time.
The market capitalization of SHIB fell 2.97% to $4.7 billion, while the 24-hour trading volume increased 12.67% to $127.3 million. Despite the recent drop in the price of SHIB, the Shiba Inu layer two (L2) solutions protocol has seen more than 600,000 Shibarium wallets created, with a million expected within the next few days.
If the bearish momentum breaks through the $0.000007905 support level, the next support level to watch out for is around $0.0000075. However, if SHIB can recover from its present price level, it might retest the barrier around $0.0000085.
SHIB/USD 24-hour price chart (source: CoinMarketCap)
The stochastic RSI is sliding below its signal line on the SHIB/USD 2-hour price chart, with a value of 27.04. This level implies that SHIB is now oversold and might see a price reversal. A stochastic RSI level below 20 would indicate a solid oversold state and raise the possibility of a positive reversal.
The MACD is moving in the negative region with a value of -0.00000006, indicating that bearish momentum is in charge. This movement shows sellers dominate the market and drive the SHIB/USD price down. On the other hand, the shrinking histogram red bars on the MACD imply that the negative momentum is fading. If purchasing pressure dominates selling pressure, this move might lead to a positive turnaround.
SHIB/USD price chart (source: TradingView)
In conclusion, DOGE and SHIB show signs of a potential reversal, as oversold conditions and increased trading activity suggest a comeback is possible amid the bearish trend.
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