Dogecoin activity surges by 36% as DOGE and SHIB undergo critical support testing
Dogecoin and Shiba Inu, two popular cryptocurrencies, experienced mixed fortunes in their valuations recently. During the past week, Dogecoin saw a notable 36% spike in active addresses, surpassing 71,400. Despite this increase, the token’s price dipped by 3% to $0.10258 while Shiba Inu fell by 2% to $0.00000655. This price movement led to a critical testing phase for both digital assets while examining essential support thresholds.
The surge in Dogecoin’s active addresses indicates a revitalized network participation. However, an upsurge in activity does not guarantee a corresponding price increase. Dogecoin recorded a considerable net outflow of $12.71 million on February 4th, pointing to significant wealth redistribution. While the network observes hints of green spikes, the predominant red bars underscore a continuous distribution pattern.
Deconstructing the technical aspects of DOGE revealed various critical insights. Dogecoin underwent a sharp fall below the crucial psychological barrier of $0.10, reaching levels unseen for months. It currently trades within a descending channel, testing its lower limits near $0.10 valuation. The Supertrend indicator reflects a bearish stance at $0.12744 well above the prevailing prices.
A specific concern revolves around the Parabolic SAR figure at $0.09455, located just below the current price level. Should the price fall below this threshold, panic selling might trigger a downwards spiral towards $0.08 or lower prices. In the event of a recovery, resistance clusters emerge at $0.10, $0.12615, and $0.12744 consecutively. Conversely, should the price scale below $0.09455, the price channel predicts a possible fall to $0.06-$0.07 amidst accelerated selling.
On the other hand, Shiba Inu’s price chart showcased more adverse developments. The cryptocurrency broke decisively beneath the $0.000007 support level, paving the way for further devaluation. Presently, SHIB is scrutinizing channel support in the $0.00000650-$0.00000660 range. Moving averages place significant resistance against the token, with 20, 50, 100, and 200 EMAs situated above its existing price.
Moreover, the Money Flow Index recorded a value of 30.28, indicating a weak cash flow and decreased buying momentum for SHIB. Despite nearing oversold territories, the index falls short of extreme dips below 20, hinting further potential downslides. In the unfortunate event of current support erosion, the subsequent vital support regions only emerge at $0.000005-$0.0000055 or potentially at $0.000004 near the channel baseline.
In conclusion, the notable activity spikes in Dogecoin, alongside the price explorations of DOGE and SHIB, underscore the dynamic nature of the cryptocurrency sector. With critical support and resistance levels at play, market participants must carefully navigate these challenging terrains to make informed trading decisions.
