SHIBA INU (SHIB) renewed its all-time high on October 28. Dogecoin (DOGE) is still far from August highs, but is already ready for growth
SHIB has grown at an accelerated pace since 23 October. The token renewed highs for five days until it formed a top at $ 0.000088. This is the current all-time high for SHIB.
However, then a correction began. The fact that the maximum was reached at the confluence point of the Fibonacci levels (long-term 1.61 and short-term 4.618) suggests that the price has formed a short-term top.
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These lines often serve as resistance after the price makes a new high.
In addition, the RSI is forming a bearish divergence. This means that a rise in price is not accompanied by an increase in momentum, which can lead to a short-term fall or trend reversal.
The 4-hour chart shows that the token is being traded within a symmetrical triangle. Usually, this is a neutral pattern, but this time it appeared after a sharp rise. Thus, an upside breakout looks like the most likely scenario.
In this case, the price may rush to $ 0.000106. This is a 1.61 Fibonacci retracement from the base of the triangle.
What’s up with DOGE?
Cryptocurrency trader @Altstreetbet published the DOGE chart, which shows that the token begins an upward movement after the completion of the current correction.
Despite the fact that it is still far from the August highs, the price has already broken the descending resistance line from August 16. Then, on October 27, it tested it as support and bounced back to form a bullish engulfing.
This is a candlestick pattern in which the previous day’s decline is fully offset by the next day’s advance.
Technical indicators are also confirming the development of bullish dynamics. RSI and MACD are growing. The momentum RSI indicator is above the 50 mark. This is a sign of a bullish trend. MACD is also in positive territory. Immediate resistance is at $ 0.45. If DOGE manages to overcome it, $ 0.74 will appear on the horizon.
Previous technical analysis for Bitcoin (BTC) can be read here.
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