Dogecoin (DOGE) Accumulation Period Might Be Over, Solana (SOL) Is Surprisingly Slow, Shiba Inu’s (SHIB) First Test

Dogecoin (DOGE) Accumulation Period Might Be Over, Solana (SOL) Is Surprisingly Slow, Shiba Inu’s (SHIB) First Test

Sat, 10/02/2024 – 0:30

Dogecoin (DOGE) Accumulation Period Might Be Over, Solana (SOL) Is Surprisingly Slow, Shiba Inu's (SHIB) First Test
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Dogecoin may be setting the stage for an exit from its recent accumulation phase. An analysis of its price action indicates that DOGE is gearing up for a potential upswing, which could be fueled by a combination of market dynamics and adoption as a payment method.

Looking at the specific price analysis, Dogecoin currently hovers around $0.08144, showing signs of stability above its established support level at $0.0779. The coin has tested this support multiple times, creating a strong psychological floor for investors. 

DOGEUSD Chart
DOGE/USD Chart by TradingView

On the upside, resistance looms near the $0.08326 mark, with a break above this level likely to pave the way for a move toward the next significant resistance at approximately $0.088.

The specific growth scenario for DOGE‘s price centers on its increasing popularity in the wake of the underperformance of other meme coins, particularly those associated with the Solana network, and new-gen meme coins in general. Dogecoin’s relative stability and established community could be attracting investors who are looking for more reliability within the volatile meme coin segment.

Moreover, the potential catalyst for Dogecoin’s next leg up could be its rumored inclusion in the X Payments system, a new digital payment platform that is anticipated to launch soon on the former Twitter platform.

Solana’s slowing recovery

Solana appears to be facing a sluggish phase in its current progression. The asset isn’t matching the rapid traction it garnered in the initial surge of the current bull market.

Specific price analysis reveals that Solana’s growth trajectory has experienced a noticeable deceleration. After cresting at a peak, its price has exhibited a slower rate of climb, trailing behind the bullish momentum seen across the broader cryptocurrency market. The technical chart indicates a recent consolidation pattern, with SOL currently trading around $105.80, unable to break past the key resistance levels that previously saw the asset achieving higher highs.

The root of Solana‘s tepid performance could likely be traced back to the most recent network outage that shook investor confidence. The fear of recurrence — a network halt leading to substantial complications — is a significant factor that seems to have applied the brakes to SOL’s price acceleration.

The scenario for price growth for Solana is contingent on restoring trust in the network’s stability. Investors are looking for solid proof of the network’s resilience and measures put in place to prevent future outages. The hesitation on the market is palpable; a combination of technical fortitude and restored investor confidence is required to reignite the momentum Solana once had.

Shiba Inu’s major test

SHIB is currently trading just below the 50-day EMA, a significant technical indicator often observed by traders. At the time of writing, SHIB is priced at approximately $0.00000938, lingering near this key resistance level. A decisive close above the 50 EMA could signal a shift in sentiment and potentially lead to further upward movement.

Looking ahead, the 100-day EMA looms as the next critical barrier, which stands just a fraction above the current price. Despite the optimistic setup, SHIB has not yet garnered sufficient traction that could propel it forward substantially. 

The meme coin space is crowded, and without distinctive catalysts, Shiba Inu’s movements will most likely remain repressed. Investors and enthusiasts are on the lookout for significant developments that could support a sustained rally, such as partnerships, platform updates or broader market tailwinds.

For now, the community watches with bated breath as SHIB approaches its first real test against the 50 EMA. The outcome of this encounter will likely influence short-term sentiment and could either validate the coin’s potential for recovery or reinforce the need for a stronger narrative to revive its prospects.

Published at Sat, 10 Feb 2024 07:11:00 +0100

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