Shiba Inu and Dogecoin Take a Hit As Bitcoin Slips to $22.5K

Key Insights:

• Dogecoin is sustaining its uptrend, trading at $0.069.
• Shiba Inu’s volatility is declining every day, which is a sign of trouble.
• The total value of the meme coin market stood at $16.4 billion today.

As the broader crypto market sent out mixed cues to the altcoins, meme coins also followed suit and collectively noted a 2.51% drop in price.

The combined value of all such assets came up to a little over $16.4 billion as Dogecoin and Shiba Inu kept their movement restricted.

Dogecoin Might Make It

The current market conditions are born of out saturation due to the consistent rally witnessed over the last few days.

However, DOGE has not been a witness to the same since, in the span of almost 40 days, the meme coin king has only noted a 28.57% recovery. Gradual incline mixed with sideways movement is making it very difficult for DOGE to recover its 65.72% crash of May and June.

While at the moment, the uptrend active on the charts isn’t looking as resilient as the altcoin needs it to be, which makes DOGE susceptible to a downtrend. Secondly, the Relative Strength Index (RSI) is also barely hanging on to some speck of bullishness, persisting above the neutral zone.

If DOGE loses either of these conditions, it will end up sinking, and should the broader market cues turn bearish, the altcoin could lose all its recovery.

Shiba Inu in Trouble?

By the looks of it, not yet, but it is on the verge of being in trouble. The meme coin is noting a rapid decline in volatility which is also visible in the Bollinger Bands’ slight convergence.

If the altcoin continues going down this path, the lack of volatility combined with price fall will place the candlestick below the basis, and every following price swing will result in a decline.

Secondly, while the MACD is maintaining its bullishness with a bullish crossover and green bars, it is equally susceptible to a change in trend, The last time this happened was in April, and right after that, SHIB plunged by almost 60% in a month.

However, given that it has managed to recover all of the losses it witnessed in June, the altcoin might be able to jump back up quickly.