ShibaDoge Crypto Tumbles Amidst Technical Weakness, Faces Bearish Trend

ShibaDoge Crypto Plummets Amidst Technical Weakness

Intraday Slump and EMA Breach

The ShibaDoge (SHIBDOGE) cryptocurrency has witnessed a significant decline, losing approximately 3.46% during intraday trading, currently hovering around $0.00016. This downward trend has been exacerbated by a breach below the 20-day exponential moving average (EMA), signaling a potential shift in momentum to the downside.

Extended Losing Streak and Bearish Sentiment

SHIBDOGE has endured a four-day losing streak, continuing its southward trajectory on Saturday. The bears appear to be gaining traction, as evidenced by the price breaking below the 20-day EMA. This technical indicator serves as a dynamic support level, and its breach suggests a weakening trend on the daily chart.

Short-Lived Rally and Profit Booking

In the first week of March 2024, SHIBDOGE experienced a brief bullish surge, surging by 130% over a week. However, this short-term gain triggered profit booking among traders and investors, leading to a subsequent price drop.

20-Day EMA as a Resistance Point

The 20-day EMA initially acted as a support level, attempting to halt the downward slide. However, the bulls were unable to maintain their momentum, and the crypto broke down after a brief consolidation period near this resistance point.

50-Day EMA as a Potential Support

With the bears seemingly in control of the short-term trend, SHIBDOGE is now heading towards the 50-day EMA at $0.000159. On the lower side, the $0.00016 level represents a previous breakout zone, which may provide some support and prevent further declines.

Volume Analysis Reveals Diminishing Momentum

Volume analysis indicates that SHIBDOGE received approximately $163.95 million in trading volume over the past 24 hours, marking a 20% decrease from the previous day. This declining volume suggests that the crypto may lack sufficient buying pressure to sustain its upward momentum.

Technical Analysis: EMA Crossovers and MACD Divergence

From a technical perspective, the SHIBDOGE price has fallen below the 20-day EMA, indicating a potential weakening trend. However, the 50-day EMA could serve as a dynamic support level and prevent further declines. Notably, the long-term trend outlook remains positive as the crypto remains above the 200-day EMA.

At the time of writing, the moving average convergence divergence (MACD) and signal lines have formed a bearish crossover, suggesting a negative sentiment prevailing in the market.

Trend Analysis: Bearish Bias with Potential Bullish Reversal

The short-term outlook for SHIBDOGE has weakened following the breakdown below the 20-day EMA. However, the bulls may attempt a comeback near the 50-day EMA and regain control in the near term.

If the bulls can make a successful comeback near the previous breakout zone, the crypto could potentially reverse its course and move higher. The first target for short-term traders could be the recent swing high of $0.00023.

Conversely, if the bulls fail to regain momentum and the bears break below the 50-day EMA, it could confirm the initiation of a correction phase, leading to further price declines.

Conclusion: Technical Weakness and Potential Trend Reversal

SHIBDOGE has embarked on a four-day losing streak, accompanied by a breakdown of the 20-day EMA. The bears appear to be in control and are aiming to retest the 50-day EMA. Technical indicators point to weakness in the trend.

The 50-day EMA may act as a potential support level. If the bulls can rally and the price reverses its course, increased buying volume could emerge above the recent swing high.

However, if the bulls fail to gain traction and the price falls below the 50-day EMA, it could trigger further selling pressure and extend the correction phase.

Technical Levels:

• Support Levels: $0.00016, $0.00014
• Resistance Levels: $0.00019, $0.00023

Disclaimer:

The views and opinions expressed in this article are solely those of the author and do not constitute financial, investment, or other advice. Trading crypto or stocks involves the risk of financial loss.