Dogecoin (DOGE) price found support after completing a double top pattern. For its part, the Shiba Inu price seeks to stay above a crucial zone of horizontal support.
Dogecoin price prediction: its bullish structure remains intact
Technical analysis of the six-hour chart shows that Dogecoin price has been declining since it generated a double top pattern on October 29 and November 1 (red arrows).
The double top is usually a bearish pattern and often leads to a decline in price. Moreover, this pattern combined with a bearish divergence in the RSI (green line). The downward movement of DOGE led to a low of $0.077 on November 8th.
The subsequent bounce (in green) created a long wick lower, which is considered a sign of buying pressure. Additionally, the RSI is now oversold.
The last time the RSI was at this level (green circle), a considerable movement in the Dogecoin price followed. The same situation was observed from 7 to 8 November.
If the same happens again, the nearest resistance would be at $0.106. This is the 0.382 Fibonacci retracement, in addition to coinciding with a descending resistance line.
Thus, whether Dogecoin breaks above the line or below the $0.077 area will likely determine whether the price direction turns out to be bullish or bearish.
Shiba Inu price prediction: the crucial level of $0.0000097
Shiba Inu price has been declining below a falling resistance line since August 14th. It validated this line between October 27 and November 2, each time creating long upper wicks (red arrows), similarly during DOGE. These wicks are considered selling pressure signals.
The rejection of this line led to a low of $0.0000093 reached on November 9, which validated the $0.000097 area as support. This is a crucial support area; a passage of the SHIB under it could accelerate its decline.
Similar to the Dogecoin price, Shiba Inu crossing above its resistance line or below the $0.00000917 support will determine the future trend.
The daily RSI could generate a bullish divergence (green line), but this has not been confirmed yet.
Currently, it seems more plausible that SHIB price will fall below its horizontal support zone. In this case, it would be expected to retest the yearly low of $0.0000071.
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