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Are Dogecoin And Shiba Inu Due A Bounce? This Trader Sees 'Bull Flag' Forming For One Coin

Published 01/05/2024, 21:15
Updated 01/05/2024, 22:40
© Reuters.  Are Dogecoin And Shiba Inu Due A Bounce? This Trader Sees 'Bull Flag' Forming For One Coin
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Benzinga - by Khyathi Dalal, Benzinga Staff Writer.

Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) have experienced a turbulent month, but traders remain optimistic about their future prospects.

What Happened: Renowned chart analyst Ali Martinez has predicted a bullish breakout for Shiba Inu, highlighting the formation of a bull flag on its daily chart. Martinez is placing buy orders around $0.000018343, anticipating a potential surge in Shiba Inu’s value to $0.000072323.

Meanwhile, crypto trader YG Crypto analyzed Dogecoin’s recent performance, which saw a dramatic 40% price drop after reaching $0.228.

Despite the sharp decline, Dogecoin is still trading above the crucial support level of $0.112-$0.123, which previously prevented a steeper fall. YG Crypto suggests that this support level could serve as a potential springboard for a rebound.

However, a break below this support could indicate further downward pressure.

Also Read: Bitcoin, Dogecoin, Shiba Inu Pumped After The Last FOMC Meeting—Will History Repeat On Wednesday?

Why It Matters: IntoTheBlock data shows a 36.2% surge in Dogecoin’s large transaction volume to $1.32 billion, while daily active addresses increased by 8.9% to 54,630. Transactions greater than $100,000 rose from 407 on April 29 to 490 on April 30, and total exchange inflows increased from $21.9 million to $30.5 million.

However, the recent price drops have reduced the percentage of Dogecoin holders currently in profit from 83% to 78%.

Shibariumscan data points to a surge in active accounts, from 1,724 on April 29 to 3,650 on April 30. Transaction fees have also witnessed a substantial increase, rising from 12.07 BONE to 61.47 BONE.

Price Action: At the time of writing, DOGE is trading at $0.1274 and SHIB is trading at $0.000022, down 0.9% and 3.9% on the day, respectively.

What’s Next: The influence of meme coins and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Are Dogecoin And Shiba Inu Primed For The Next Leg Up?

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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