Just like big cap coins, meme coins on the market have been in a dire situation for the past few hours. Dogecoin (DOGE) and Shiba Inu (SHIB) in fact, it has lost more value in the last day compared to the last 7 days.
Despite the massive drop, both meme coins appeared to show signs of recovery at press time. As can be seen from the chart attached below, the last three hours have been pretty good for these two cryptocurrencies.
DOGE managed to record two green candles in the three intervening hours. SHIB, on the other hand, showed three green candles in the same time frame, showing the recovery in a more concrete way.
Interestingly, their volume (shown below the candles) has also been quite high over the past few hours. Thus, it is possible to state that a fair share of participants has indeed started to “buy from the bottom”.
Could This Be a Sign of Ascension?
Less than a week ago, SHIB broke above its descending channel and recorded consecutive green candles. However, it lost value soon after. In retrospect, the last drop didn’t seem very deep.
On the daily chart, SHIB was still trading slightly below the 61.8% Fibonacci level at the time of writing. If the green candles continue to show in the next few hours, it could manage to reclaim $0.00003798 as support.
If it fails to do so, however, SHIB could slide as low as $0.0002413. In such a scenario; If the bears manage to gain control over the bulls, HODLers (who prefer to hold the coin) can expect this coin to revisit any level around $0.00000648.
DOGE’s prospects, on the contrary, looked a little more bleak. Over the past day, the biggest meme coin has broken below most of its support and is trading at a level reminiscent of those recorded in July. Earlier in the day, it actually dropped to a low last seen in April.
Therefore, if it continues on the downtrend charts for DOGE and manages to break below the $0.158 support level, it could drop as low as $0.101.
However, on the lower timeframe, the green candle was able to hold its trend, it would be able to gradually cover its losses and bounce back to $0.2 after crossing $0.182.
Community Favorite Pets
Let’s face it, the community often plays a key role in helping meme coins recover. At the time of writing, sentiment data from Santiment reflected a rather interesting trend.
Over the past few hours, DOGE’s words on social media have been generally positive. In fact, the positive emotion managed to outshine the negative emotion. If the trend goes in the same direction, community members can successfully help DOGE recover despite the stagnation in the price chart.
A similar trend was observed in SHIB. Now, this actually means that community members still support both DOGE and SHIB despite what has happened in the last few hours.
While meme coins generally follow the path that Bitcoin and other big-cap altcoins have previously charted, they have been able to defy this trend multiple times in the recent past. So, regardless of the state of the broader market at this stage, these two coins can have surprising market participants. The prospects for recovery seem to slightly outweigh the odds of continuing their downtrend at this point.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.