DOGE and SHIB Price: Ready For Liftoff?

Jon Morgan
Published: May 17, 2024, 13:16 GMT+00:00

The Ichimoku Kinko Hyo system, in conjunction with the CI and DTO, provides a fairly clear idea of what to expect with Shiba over the few days to two weeks.

Shiba inu coin, FX Empire

In this article:

Dogecoin Poised for Major Breakout with Strong Technical and Fundamental Support

Dogecoin is very close to a major breakout soon. From a fundamental viewpoint, DOGE is underperforming the memecoin class of cryptocurrencies by a wide margin. And because DOGE has more than its memecoin status to support it, it becomes an extremely attractive long setup.

From a technical analysis perspective, the neckline of a developing inverse head-and-shoulder pattern (1) has proved to be a difficult one for bulls to cross and close above. A close above $0.162 would confirm the inverse head-and-shoulder pattern and give DOGE the best chance at a bullish continuation move that it has had since February.

If a close above $0.162 occurs, then a swift drive up to a cluster of resistance in the $0.205 value area is highly probable. $0.205 contains the 161.8% Fibonacci extension and the 50% Fibonacci retracement. It’s there DOGE buyers might want to wait and see what happens.

While the Composite Index (CI) and Detrended Price Oscillator (DTO) both show conditions favorable for a bullish breakout to have enough momentum to push higher, the current location of the CI indicates the resistance in the $0.205 value area may indeed be a speed bump. The CI isn’t that far from one of its historical resistance levels (4).

If $0.205 is tested and proves to be as strong as a wet paper towel, then the next target is a massive confluence of Fibonacci levels in the $0.25 to $0.27 range (3). Two different Fibonacci extensions, one from the daily and the other from the weekly, sit in that range, and both are at the 200% extension level. The other is a $0.618 Fibonacci retracement.

And if you’re wondering if there’s enough momentum to return Dogecoin into a big expansion phase, the weekly chart may give us all the analysis we need:

Hidden bullish divergence exists between the DTO and CI with the weekly candlestick chart. Additionally, both the CI and DTO are at historical support levels.

SHIB Set for Sharp Move Higher with Key Levels and Oscillator Signals

SHIB‘s analysis won’t take nearly as much reading or time as Dogecoin’s. Let’s take a look at the weekly chart:

The Ichimoku Kinko Hyo system, in conjunction with the CI and DTO, provides a fairly clear idea of what to expect with Shiba over the few days to two weeks. Let’s talk about the oscillators first. Both are at major lows. The CI is at its lowest level since February 2023, and the DTO is at its lowest level since June 2022. Additionally, if you look at the angle of their respective lines, it’s formed a very defined ‘hook’, indicating at the very least a sharp move higher is in play. Additionally, hidden bullish divergence exists on between the oscillators and the candlestick chart.

Now, let’s bring the chart in a little.

If you’re someone who doesn’t know if or when they should enter SHIB, this might help you. Key level to watch is the Kijun-Sen at $0.00002668. For Ichimoku traders, buyers are waiting for a weekly close above $0.00002668 before entering a new long position, or adding to existing long positions.

This weekend should be a fun one to watch playout. Just remember to trade smart, no dumb.

About the Author

Jon brings over 15 years of experience in trading and technical analysis. In addition to FXEmpire, he authors The Litepaper, Stocktwits’ crypto newsletter with a subscriber base of 400,000.