- Dogecoin and Shiba Inu maintain support at key levels, hinting at a possible recovery.
- On-chain metrics for both meme coins show positive funding rates and dormant activity, reinforcing bullish sentiment.
- The technical outlook points to potential double-digit gains for both meme coins in the future.
Dogecoin (DOGE) and Shiba Inu (SHIB) are showing early signs of a potential rally, as both meme coins stabilize at key support levels. On-chain metrics for the canine-themed meme coins show positive funding rates and dormant activity, reinforcing bullish sentiment. The technical outlook also supports the possibility of double-digit gains, setting the stage for a renewed bullish push in the canine-themed crypto duo.
Canine-themed meme coins show a positive trend
According to data from Coinglass’s open interest (OI) weighted funding rate, the number of traders betting that Dogecoin and Shiba Inu prices will fall further is less than those anticipating a price increase.
This index is based on the yields of futures contracts, which are weighted by their open interest (OI) rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment, while negative numbers (shorts pay longs) indicate a bearish trend.
The metric stands at 0.0094% and 0.0101% for DOGE and SHIB, respectively, reflecting a positive rate and indicating that longs are paying shorts. This scenario often signifies bullish sentiment in the market, suggesting potential upward pressure on DOGE and SHIB prices.
The Age Consumed Index from data provider Santiment projects a bullish outlook for these canine-themed meme coins. Spikes in this index suggest that dormant tokens (tokens stored in wallets for a long time) are on the move, and can be used to spot short-term local tops or bottoms.
In the case of DOGE and SHIB, history shows that spikes were followed by an increase in the prices of these meme coins as holders. The most recent rally on Tuesday also predicted that these canine-themed meme coins were ready for an upward trend.
Dogecoin Price Forecast: DOGE bulls target 20% gains
Dogecoin’s price has been tested multiple times, and support has been found around its 200-day exponential moving average (EMA) at $0.21 since last week. As of Wednesday writing, it is trading above this support level at around $0.23.
If the 200-day EMA holds strong, DOGE could extend the rally by 20% from its current trading levels to retest the 50% price retracement level (drawn from the August 2023 low of $0.05 to the December 2024 high of $0.48) at $0.27.
The Relative Strength Index (RSI) on the daily chart marks 61, above its neutral level of 50, indicating bullish momentum.
However, if DOGE breaks and closes below the 200-day EMA at $0.21, it would extend the correction to retest its next weekly support at $0.18.
Shiba Inu Price Forecast: SHIB targets a 30% rally
Shiba Inu’s price has been tested, and support has been found around its 50-day EMA at $0.000013 since Saturday, holding above this level for the next three days. This level roughly coincides with the previously broken descending trendline (drawn connecting multiple highs since mid-December) at $0.000014, making it a key support zone. As of Wednesday writing, it is trading at around $0.000014.
If the 50-day EMA holds strong, SHIB could extend the rally by 30% from its current level to retest its next daily resistance at $0.000019.
The RSI on the daily chart marks 61, above its neutral level of 50, indicating bullish momentum.
However, if SHIB closes below $0.000013, it could extend the drop to retest its April 16 low of $0.000011.
