Summary
The main meme cryptocurrencies, Dogecoin (DOGE) and Shiba Inu (SHIB), show signs of a potential bullish reversal amid a turbulent market. Both coins are within key technical formations that could anticipate a trend change and a significant breakout in the coming days.
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📈 Market Context
Over the last 24 hours, the cryptocurrency market experienced a correction, particularly affecting major meme coins. The global market for these assets fell by 5% to $56.34 billion. However, technical analysis and futures data reveal potential recovery opportunities for DOGE and SHIB.
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🐶 Dogecoin (DOGE): Recovery in Descending Wedge Formation
Current Price (Friday): $0.1763 (+3% daily).
Previous Drop: -10% on Thursday.
Technical Pattern: Descending Wedge, with:
Resistance: peaks from May 23, May 25, and June 5.
Support: lows from May 20, May 31, and June 5.
Upcoming Key Resistances:
Upper Trendline: $0.1832.
50-Day EMA: $0.1946.
200-Day EMA: $0.2039.
👉 Technical Interpretation: If DOGE manages to close above $0.1832, it could break the bearish pressure and confirm the bullish reversal.
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🐕 Shiba Inu (SHIB): Bullish Divergence in RSI and Wedge Formation
Current Price (Friday): $0.00001238 (+3% daily).
Previous Drop: -6.32% on Thursday.
Technical Pattern: Descending Wedge, with:
Resistance: peaks from May 23, May 29, and June 5.
Support: lows from May 13, May 19, and May 31.
Key Support: $0.00001159 (low from April 16).
RSI Indicator (4H chart): 37, exiting the oversold zone with a formation of higher lows against the price drop between May 31 and June 5.
👉 Technical Interpretation: This bullish divergence in RSI suggests a potential reversal in SHIB, reinforcing the expectation of a technical bounce.
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📊 Liquidation Data: Bearish Pressure is Cooling
According to Coinglass:
Dogecoin:
Last 12 hours: $1.13 million in short liquidations and $183K in long.
Last 24 hours: $23.78 million in longs and $3.42 million in shorts.
Long liquidations dropped drastically from $718K (24h) to less than $800 (12h).
Shiba Inu:
Short Liquidations: $14.85K (12h) and $50.69K (24h).
👉 Interpretation: The reduction in long liquidations indicates that leveraged positions have been purged, allowing prices to stabilize and potentially form a technical bounce.
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🚨 Conclusion
Both meme coins—Dogecoin and Shiba Inu—show promising technical patterns (descending wedges) alongside momentum indicators (like RSI) that support a bullish divergence. This suggests that a significant breakout could be brewing in the coming sessions, especially if prices surpass key resistances and remain above relevant moving averages.
However, caution remains key: although the technical sentiment is bullish in the short term, the volatility of the cryptocurrency market demands proper risk management.
#TrumpVsMusk #MarketPullback #TokenReserve #Dogecoin #SHIBA🚀 