The prices of Dogecoin (DOGE) and Shiba Inu (SHIB) continue to adjust after failing to break through key resistance levels. The negative signal is even more evident as the number of short orders has sharply increased in the trading community, further reinforcing forecasts of upcoming declines for the two famous dog-themed memecoins.
Short selling of memecoins is increasing among traders.
The long/short ratio on CoinGlass for DOGE and SHIB is recorded at 0.86 and 0.82 on Wednesday — the lowest in over a month. The maintenance of this ratio below 1 clearly reflects the widespread pessimism in the market, as the majority of traders bet on the scenario of prices continuing to plummet.
Additionally, another negative signal that reinforces the bearish argument is the weakening of the funding rate. Data shows that the funding rates of both dog-themed memecoins are on a sharp decline: DOGE's rate is only 0.0005%, while SHIB has dropped to 0.0001% on Wednesday — and is likely to soon fall into negative territory. When the funding rate turns negative, short positions will have to pay fees to the buyers, which not only reflects a bleak outlook but could also trigger a deeper correction for both DOGE and SHIB.
Dogecoin Price Prediction: DOGE Rejected at the Old Trend Line
Dogecoin (DOGE) has lost its upward momentum after breaking below the upward trend line — established by connecting the bottoms since June 22 — during trading on Friday. At the same time, DOGE also closed below the 50-day exponential moving average (EMA) at the $0.20 mark, raising concerns about a more pronounced corrective trend. Although there was a slight recovery from Sunday to Monday, this memecoin still failed to regain the trend line it just broke through, and continued to slide on Tuesday. As of the time of writing on Wednesday, DOGE remained in the red, trading below $0.19.
If this negative trend continues, DOGE risks dropping to the important support area at $0.18. A close below this level could pave the way for a deeper correction, aiming to retest the bottom from July 1 at $0.15.
Technical indicators are also leaning towards a bearish scenario. The relative strength index (RSI) on the daily chart is at 42 — below the neutral threshold of 50 and continuing to decline — indicating that selling pressure remains dominant. Meanwhile, the MACD indicator still maintains a bearish crossover signal, further strengthening the argument for a downward trend.
However, if DOGE unexpectedly regains its upward momentum, the next resistance area to conquer will be around the $0.24 mark on the daily chart.
Shiba Inu Price Prediction: Bears Completely Control the Downward Momentum
The price of Shiba Inu (SHIB) has lost an important technical support level after closing below the 50-day EMA on July 29, subsequently plunging 10% within the next four days. Despite a slight recovery signal from Sunday to Monday, weak demand caused the upward momentum to falter, forcing SHIB to turn back down on Tuesday. As of the time of writing on Wednesday, the downward trend still prevails, with SHIB fluctuating around the $0.0000119 mark.
If selling pressure continues to increase, SHIB is likely to retreat to the next support area around $0.0000111. A break and close below this level could trigger a deeper decline, bringing the price back to test the old bottom from June 22 at $0.0000100.
Technical indicators like RSI and MACD are currently leaning towards a negative scenario, similar to DOGE's trend, indicating that downside risks still exist.
Conversely, if SHIB unexpectedly reverses and reclaims the 50-day EMA on the daily timeframe, the upward trend could be reignited, opening up the opportunity to move towards the significant resistance area at $0.0000136.
