Key Takeaways:
- SHIB and DOGE face further drops of over 40%.
- Dogecoin continues its development, but the effort might not be enough.
- Shiba Inu and Dogecoin depend on Bitcoin and the broader market.
YEREVAN (CoinChapter.com) – On July 10, meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) traded at $0.07 and $0.0000123, respectively, after two weeks of sideways consolidation. However, the meme coins’ daily charts printed a 40% plunge in the works.
Meme coins poised for a breakdown
The graph below demonstrates that the meme coins charted in unison for months, which suggests the correlation could continue.
Moreover, both digital assets formed similar patterns, best visible on the daily chart. For example, the DOGE/USD graph below printed an ‘ascending triangle.’
Ascending triangle for DOGE and SHIB
The formation entails a horizontal resistance that caps the upside attempts and ascending support, preventing breakdowns. However, once the asset exhausts the pattern, traders could anticipate a move in the direction preceding the triangle.
DOGE and SHIB experienced an over 35% drop from June 1-14. Thus, the possible drawdown after the triangle could be similar, pinning the Dogecoin target price at approximately $0.04 and Shiba Inu target price at $0.0000064.
The declining trading volumes backed the bearish forecast, hinting at modest expectations from traders. Meanwhile, the meme coins announced upgrades to their blockchain.
Can Dogecoin upgrade save the day?
Three weeks after core upgrade 1.14.6, Dogecoin announced the release of LIBDOGECOIN. Core developer Michi Lumin advertised the release as a C-library of Dogecoin building blocks, which would allow less technically sound users to develop Dogecoin-compliant products with ease.
Additionally, LIBDOGECOIN will support multiple programming languages, including Python, Ruby, and Node.js. However, it is not clear whether the development would add to the Dogecoin blockchain’s value.
Also read: Shiba Inu (SHIB) rallies after listing on Philippines’ crypto exchange.
However, Shiba Inu and Dogecoin depend on larger players in the crypto market, such as Bitcoin and Ethereum.
Furthermore, the digital asset sector also depends on broader market conditions, unstable geopolitical situations, and fiat economies. Therefore, should the leading cryptocurrencies drop further, meme coins could follow and suffer sharper declines.
