Meme coins have been showing considerable weakness since the crash in the crypto market in May. They weren’t the primary target of the crypto crackdown, but they suffered the most, since they already were very volatile before the crash.
Shiba Inu and Dogecoin lost 75-80% of the value and the sentiment remained quite bearish for these cryptos, as they kept making lower highs until August. That was another sign of weakness, since almost the entire crypto market had been running higher for two weeks, while meme coins were still bearish.
That lasted until the second week of August, when they finally decided to wake up and make a bullish move. SHIB/USD increased from around $0.0000062 to $0.0000088 in a single day, but stalled there for several days, before the next bullish move, which we covered on our 2021 Shiba Inu forecast.
Shiba Inu Analysis – SHIB/USD Daily Chart
Shiba Inu facing moving averages on the daily chart
The next push came by the middle of August, which took the price to $0.95 according to my crypto broker, but buyers couldn’t push above the $0.000010 level. That was yet another sign of weakness since most cryptos had a really strong run in the second bullish wave and many of them doubled in price.
Not the meme coins though. They stopped the bullish momentum back then and have been retreating lower for more than a week. The Shiba Inu coin has retreated down to $0.00000747, so it has given back nearly 20% of the gains. Today, the crypto market has retreated but it is nowhere near the meme coins decline. So, they are looking quite bearish.
Although, they will resume the bullish trend eventually, especially if the sentiment turns bullish again in cryptos. The selling pressure looks weak in the crypto market, so this retreat looks like just a retreat in the cryptocurrency market after the strong bullish momentum previously and the next bullish move, which might come soon. Therefore, this retreat in meme coins might be a good opportunity to buy Shiba Inu of Dogecoin. The stochastic indicator is sort of oversold, suggesting that SHIB/USD is becoming oversold on the daily chart, while the moving averages should provide some support.