Amid crypto decline, oversold alerts fuel hope for SHIB and DOGE

• The SEC deferred its decision on Bitcoin ETFs, impacting the crypto market.
• Dogecoin’s value dropped 4.47% but its trading volume surged by 20.29%.
• Shiba Inu’s market cap decreased by 2.97% despite increased trading volume.

The US Securities and Exchange Commission (SEC) deferred its decision on spot Bitcoin ETFs on August 31st, triggering a bearish sentiment in the crypto market. Consequently, Dogecoin mirrored this downturn, sliding from its 24-hour peak of $0.06692 to an intraday trough of $0.06309 before stabilizing.

DOGE is valued at $0.06356 at the time of writing, marking a 4.47% drop from its daily peak. Although its market cap has seen a 4.56% reduction to $8.95 billion, the digital currency’s 24-hour trading volume has experienced a surge of 20.29%, reaching $217.09 million.

A stochastic RSI reading of 24.07 suggests that DOGE is currently oversold, signaling a potential resurgence. This oversold status indicates that the selling pressure on DOGE is nearing its limit, potentially leading to a price reversal. Moreover, the surge in trading volume denotes a heightened interest and engagement in DOGE, which could further fuel a possible rebound.

The MACD line currently resides in the bearish territory, registering a value of -0.004, suggesting a potential resurgence for DOGE. This negative value signifies substantial selling pressure. However, should the MACD line start trending towards the bullish zone, it could indicate a shift in momentum, potentially leading to a price appreciation.

Shiba Inu (SHIB)

Shiba Inu has also experienced a downturn, as bullish attempts to counter the prevailing bearish trend were unsuccessful, unable to breach the resistance level of $0.000008223. As a result, SHIB retraced to a 24-hour low of $0.000007905 before settling at a trading price of $0.0000079711 at the time of reporting.

SHIB’s market cap experienced a 2.97% decrease, settling at $4.7 billion, even as its 24-hour trading volume saw a 12.67% surge to reach $127.3 million. Despite the recent depreciation in SHIB’s value, Shiba Inu’s Layer 2 (L2) solutions protocol, Shibarium, has created over 600,000 wallets. This number is projected to hit the one million mark in the coming days.

Should the downward trend breach the support threshold of $0.000007905, the subsequent support level to monitor would be approximately $0.0000075. Conversely, if SHIB rebounds from its current price point, it could challenge the resistance level near $0.0000085.

The SHIB/USD 2-hour price chart indicates that the stochastic RSI is currently trending below its signal line, registering a value of 27.04. This suggests that SHIB is in an oversold territory, hinting at a potential price reversal. Should the stochastic RSI dip below 20, it would signify a strong oversold condition, thereby increasing the likelihood of a bullish reversal.

The MACD is trending in the negative territory, registering a value of -0.00000006, which signifies a prevailing bearish momentum. This trend indicates a market dominated by sellers, exerting downward pressure on the SHIB/USD price. However, the diminishing red bars on the MACD histogram suggest a weakening of the negative momentum. If buying pressure supersedes selling pressure, it could trigger a bullish reversal.

To sum up, DOGE and SHIB are exhibiting indications of a possible trend reversal, with the oversold conditions and heightened trading activity hinting at a potential resurgence despite the prevailing bearish trend.