Dogecoin DOGE/USD and Shiba Inu SHIB/USD Have Dropped

Dogecoin DOGE/USD and Shiba Inu SHIB/USD have dropped on Monday, but traders remain optimistic about DOGE's recovery, while Shiba Inu's ecosystem fundamentals indicate resilience.

Shiba Inu SHIB/USD and Dogecoin DOGE/USD had dropped on Monday, but traders remained optimistic about DOGE's recovery, while Shiba Inu's ecosystem fundamentals showed resilience.

Here's a breakdown:

What Happened: Crypto trader Tardigrade noted that Dogecoin had broken out of an inverse head & shoulders pattern and was now in a possible retest zone, ranging from the Fibonacci 0.618 level to a key support zone.

Chart Credit: Tardigrade via X for the above and other charts.

This breakout, if successful, could propel Dogecoin towards the Fibonacci 1.272 level, presenting a substantial move.

Chart analyst Ali Martinez said that Dogecoin could be ready for a rebound, as the TD Sequential indicator had clocked a buy signal on its hourly chart.

#Dogecoin $DOGE could be ready to rebound as the TD Sequential indicator presents a buy signal on the hourly chart! pic.twitter.com/4arJRuXu8a

— Ali Martinez (@ali_chart) February 27, 2024

Shiba Inu's burn rate had skyrocketed by 164.4% in the past 24 hours, with 13.5 million SHIB being removed from circulation, according to Shibburn data.

Despite this surge, large transaction volume dropped by 29%, and daily active addresses had a smaller increase of 12.9%, as per IntoTheBlock data.

Transactions greater than $100,000 saw a drastic rise from 41 to 73 in a single day. However, only 18% of SHIB holders were in the green at current levels, showing a significant decrease from 40% previously.

Why It Matters: With a strong community and ongoing development, optimism traders remained optimistic about a recovery for Dogecoin from recent lows.

Shiba Inu's ecosystem saw the launch of a new game in Shiba Eternity, which would reward users and contribute to the SHIB burn initiative.

Announcing the game, Shiba Inu's marketing lead, Lucie, said in an X post on Monday that the game would begin burning around 10,000 SHIB per match.

Good news everyone! 🤩 A new game mode is launching in Shiba Eternity tomorrow!

We've been working hard to bring you a fun and engaging way to earn rewards while helping burn SHIB. 🔥

Stay tuned for more details. ⏰pic.twitter.com/e606r8x81G

— Lucie (Shiba Inu) (@LucieMosquera) February 26, 2024

Price Action: At the time of writing, Dogecoin was trading at $7.66, down 1.3%.

Shiba Inu was trading at $0.0001, down 0.4%.