- The social engagement metrics for Dogecoin and Shiba Inu have declined since May.
- DOGE is now sitting on weak support, ready to retest $0.17.
- Similarly, SHIB is preparing to drop to $0.0000582.
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Dogecoin and Shiba Inu lost the crowd support that allowed them to reach all-time highs. Until the retail interest returns, both assets can incur further losses.
Dog icons look ready to dive
Dog tokens lose their power.
DOGE and SHIB shares soared in tandem earlier this year, posting extraordinary returns before the market crashed in May. Along with many other digital assets, both hit all-time highs as retail interest in the space peaked.
data From LunarCRUSH shows that social engagement metrics for Dogecoin and Shiba Inu are up amid the market frenzy. LunarCRUSH measures social media interactions such as favourites, likes, comments, replies, retweets, and shares. DOGE recorded more than 1.76 billion on May 9, while SHIB reached 122 million.
However, the level of social activity for both origins has decreased since May. Dogecoin social activity is currently hovering around 150 million interactions per day, while Shiba Inu’s activity is approaching 10 million.
As interest in DOGE and SHIB wanes, their prices may face a sharp decline.
Dogecoin appears to be stagnant
Dogecoin price action has been stagnant for the past five months. The 10th largest cryptocurrency by market capitalization recorded a series of lower highs while the $0.17 support level is absorbing any decline.
Technically, the price behavior appears to have formed a bearish triangle on the daily chart. With DOGE nearing the top of the consolidation pattern, a major price movement may be imminent.
The decisive daily candlestick close above the hypotenuse at $0.26 may lead to a massive breakout towards $0.41. However, investors need to pay attention to the triangle’s X-axis at $0.17 since this level was lost as support could see DOGE collapse to $0.04.
And while the macro outlook is pointing to more recession until support or resistance is broken, the near future looks bearish.
Dogecoin is currently being held by the Tom DeMark (TD) Sequential setup trendline at $0.198. This support level is weakening over time, which indicates an approaching violation. A break of this level is likely to occur soon, which could push DOGE lower towards the X-axis of the triangle at $0.17.
Shiba Inu to retest support
Like Dogecoin, Shiba Inu has endured a long stagnation period. Its price appears to be embedded within a parallel channel on the daily chart.
Every time SHIB has risen to the upper or middle boundary of the channel since June 5, a rejection has occurred, pushing prices to the lower edge. From this point, it tends to bounce, which corresponds to the characteristics of the channel.
SHIB was recently rejected from the upper boundary of the channel and is currently trading below the middle trend line. These conditions suggest that if the price action seen over the past month repeats, Shiba Inu will dive to the lower edge of the channel at $0.0000582.
It is worth noting that SHIB needs to hold $0.0000582 in the event of a bearish impulse, as a close below this critical demand wall could lead to a 36% retracement.
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