Memecoins are on rise despite most recent market sell-off
Dogecoin’s most recent performance in the cryptocurrency market surprised the majority of investors and traders, as the “old classic” memecoin easily broke through first resistance on its way to a trend reversal.
The daily timeframe of the cryptocurrency suggests that DOGE is getting close to the major resistance line of the 50-day Exponential Moving Average, which is often considered a barrier between descending and ascending trends.
In the event of a breakthrough, Dogecoin will be poised for a strong rally although it has already gained over 40% of its value in the past seven days, making it one of the most profitable assets in the crypto market. -currencies.
During the run, DOGE easily broke through the 21-day Moving Average, which is used as a signal line during strong down or uptrends. The line’s breakthrough puts assets in the “reversal candidate” basket.
Memecurrencies on the rise
Dogecoin’s “competitor” Shiba Inu has also had a pretty solid performance in the cryptocurrency market posting a 50% gain in the past five days, making it one of the strongest assets as well. solids of the top 100 cryptocurrencies by market capitalization.
SHIB also broke through the 21-day Exponential Moving Average resistance line and is now consolidating at the 50-day EMA, which Dogecoin is only yet to reach in the upcoming days.
The shorter-term time frames also show that there is still a long way to go for both meme assets, as Dogecoin just faced one of the strongest resistances on the chart, the 200 EMA resistance, and Shiba Inu reaches the top of the consolidation channel formed in the May-June period.
At press time, Shiba Inu is trading at $0.000001180, and DOGE is changing hands at $0.07.
