Dogecoin Dominates Shiba Inu in Meme Coin Rally

Dogecoin and Shiba Inu, two popular meme coins, have exhibited contrasting reactions in the face of recent market retracements. Dogecoin has demonstrated resilience, bouncing back from support levels with bullish momentum, while Shiba Inu has experienced a lack of conviction from both bulls and bears, leading to sideways movement. The sentiment surrounding Bitcoin, as well as key Fibonacci retracement levels, are expected to influence the future direction of these meme coins.

Meme Coin Market Analysis: Dogecoin Outperforms Shiba Inu Amidst Key Support Retests

Introduction

Dogecoin (DOGE) and Shiba Inu (SHIB), the two prominent meme coins, have witnessed significant retracements in the past three weeks. While Dogecoin has exhibited resilience, Shiba Inu has faced challenges in regaining upward momentum.

Dogecoin: Bulls Take the Lead

Dogecoin has demonstrated a bullish response at the support zone of $0.18-$0.194, which was retested on March 19th. Buyers have pushed prices higher, resulting in a 39.2% gain since the recent swing low.

The one-day chart indicates a bullish structure, with the Relative Strength Index (RSI) signaling strengthening upward momentum. The On Balance Volume (OBV) has formed higher lows throughout March, suggesting a lack of selling pressure.

Key resistance levels for Dogecoin lie at $0.206 and $0.283, with potential for further upside if these levels are breached.

Shiba Inu: Bulls Struggle for Momentum

Shiba Inu has encountered resistance in its recovery attempts. While the 61.8% Fibonacci retracement level has provided support, bulls have been unable to sustain upward price action.

Trading volume has declined significantly since the late February rally, indicating a lack of conviction among buyers. The OBV has also fallen to February highs, reflecting selling pressure.

Sentiment and Market Conditions

The sentiment surrounding Bitcoin (BTC), the leading cryptocurrency, is expected to influence the inflow of capital into meme coins in the coming weeks.

The liquidation levels heatmap for Dogecoin shows pockets of liquidity at $0.176-$0.178 and $0.195, indicating potential areas of support and resistance.

Shiba Inu's dormant circulation has trended downward, suggesting a lack of increased selling pressure. However, the MVRV ratio remains high at 27%, indicating holder conviction.

Conclusion

Dogecoin has outperformed Shiba Inu in terms of price action and momentum. While both coins retain their bullish market structures, Dogecoin bulls have shown greater conviction in leading the rally.

Shiba Inu buyers remain cautious, with trading volume and sentiment indicating a lack of urgency for a recovery. The overall market conditions and Bitcoin's price action will play a crucial role in shaping the future trajectory of these meme coins.