The memecoin market has displayed a sharp recovery this week as major tokens consistently record positive trading days. Adding to this, Dogecoin and Shiba Inu have witnessed increasing volatility since May end. Moreover, DOGE and SHIB technical sentiments hint at a strong bullish reversal this week. This brings these memecoins back under the radar of investors and whales.
DOGE Memecoin Hints at Breakout Formation
The Dogecoin price has added over 5% to its valuation in the last seven days, resulting in the memecoin reclaiming the $0.20 mark. While the dominance of the largest memecoin has stabilized at 0.8664%, its market capitalization is $29.97 billion. Notably, this results in 46.497% share of the total memecoin market.
The RSI indicator in the daily time frame has breached the neutral point after retesting its oversold range in the chart and is valued 50.51. Furthermore, the average trendline has witnessed a positive crossover. This type of a trend suggests a bullish outlook for the token.
The Moving Average Convergence Divergence (MACD) indicator records a steady drop in the red histogram, highlighting a sudden increase in the bullish presence. With a bullish convergence in its averages, the Dogecoin price may display a sustained positive action this week.
The DOGE price could head toward its resistance trendline of the triangle pattern if the bullish sentiment sustains. Additionally, it could smash the $0.25156 mark if the optimism among the investors takes a jump. However, a retest around the $0.175 mark is possible in case the market experiences increased liquidation.
Shiba Inu to Break Its Triangle Pattern?
Over the past 24 hours, the SHIB price has added approximately 2% to its valuation with a trading volume of $199.19 million, a change of -13.98%. With this, the market valuation of this memecoin has increased to $7.825 billion with a dominance of 0.2262%.
Additionally, the SHIB memecoin has formed a triangle pattern and continues trading within it since mid-April. Moreover, it has successfully retested the support trendline for the second time, suggesting a bullish outlook in the longer time frame.
The Relative Strength Index (RSI) is headed toward the neutral point after successfully retesting its oversold range and is currently valued at 48.77. Notably, the trendline records a sideways trend below the halfway mark, suggesting a cool-off in the buying pressure.
On the other hand, the MACD indicator shows a rising green histogram in the daily time frame. This suggests an increase in the bullish sentiment for the memecoin in the market. Considering the market sentiments, the chances of Shiba Inu price recording a bullish reversal are extremely high.
Maintaining the value above the resistance of $0.00001340 could result in it retesting its resistance trendline of the triangle pattern. In case of a breakout, the upper resistance target levels are $0.0000160 and $0.00001925, respectively. Conversely, a bearish pullback may end up hitting its crucial support line of the triangle pattern.
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