TL;DR
Dogecoin and Shiba Inu rise amid Bitcoin surge, eyeing resistance points.
Shiba Inu sees increased loss zone addresses; Dogecoin's profitability declines.
Dogecoin's rising volatility suggests significant price moves.
Shiba Inu's Shibarium adopts coin-burning for supply reduction.
Both show solid open interest in trading.
Dogecoin's trajectory hints at $0.095 or $0.07; Shiba Inu tests $0.0000095 resistance.
Caution is advised in the volatile meme-inspired cryptocurrency market.
Key developments: Shibarium's coin-burning, Dogecoin's volatility index rise.
You can also read: The Rise of Memecoins: Exploring the Internet's Currency Craze
The financial spotlight is back on meme-inspired cryptocurrencies as Dogecoin and Shiba Inu ride the updraft from Bitcoin's substantial surge towards the $40,000 mark. Both Dogecoin and Shiba Inu are rebounding from previous downtrends and now aim to break through higher resistance points. Increasingly, market participants are considering these assets as viable long-term holdings, inspired by speculations of Dogecoin's potential incorporation into leading payment platforms.
Dogecoin and Shiba Inu - A Tale of Fluctuating Fortunes
In recent times, Shiba Inu has witnessed an increase in the number of addresses falling into the loss zone, with about 68% of holders (roughly 902,000 addresses) now experiencing losses. In contrast, Dogecoin's profitability has slumped with less than half of the holders making profits, approximating to around 2.7 million addresses.
However, not everything is gloomy. Dogecoin's volatility index is rising, currently at 76%, indicating potential significant price movements shortly. Shiba Inu is also gaining traction as Shibarium, a layer 2 solution for Shiba Inu, is set to implement an aggressive coin-burning strategy intending to reduce the circulating supply of Shiba Inu tokens.
Regarding trading activities, the open interest (OI) for both Dogecoin and Shiba Inu remains solid, with Dogecoin’s open interest trading at around $400 million, and Shiba Inu’s standing at approximately $16 million.
Examining the Price Trajectory of DOGE
Dogecoin has been trading below its 20-day Exponential Moving Average (EMA) of $0.08 for a while now. The anticipated drop to $0.07 did not occur due to the bulls' tenacity to maintain the price above $0.075. As of this writing, DOGE is trading at $0.079, marking a modest increase of 2% from the previous day.
The 20-day EMA trend and the Relative Strength Index (RSI) hovering at 44 suggest an equilibrium between buying and selling pressure. If DOGE clears the descending resistance line, we could see the price rise towards $0.095. Conversely, encountering resistance near $0.085 could embolden bears, leading to a possible drop to $0.07.
Analyzing the SHIB Price Action
Shiba Inu, after testing the accumulation zone at $0.0000084, is now experiencing a price push toward immediate Fibonacci levels. However, it continues to face resistance near the EMA20 trend line. Currently, SHIB trades at $0.0000089, marking a 1.6% increase in the last 24 hours.
If buyers manage to push the price above the 20-day EMA and maintain it above the resistance line at $0.0000095, we could see Shiba Inu breaking the $0.00001 mark. However, a price reversal from the 20-day EMA might mean that bears are selling on rallies, increasing the likelihood of a price descent toward the support of $0.0000083.
In conclusion, the future of meme-inspired cryptocurrencies is riddled with uncertainty and potential. Dogecoin and Shiba Inu, despite their volatile swings, have captured the interest of investors worldwide and continue to make waves in the digital currency landscape. The impending implementation of Shibarium's coin-burning strategy and the potential for substantial price movements due to Dogecoin's rising volatility index are developments worth tracking. While it's critical to remain aware of the risks inherent in cryptocurrency investment, the potential rewards can be compelling for those willing to navigate the tumultuous waters of this burgeoning asset class. As always, thorough research and due diligence should be the guiding principles for anyone venturing into the dynamic world of cryptocurrencies.
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