In the current market conditions, a well-known crypto trader is sounding the alarm on two dog-themed memecoins – Dogecoin (DOGE) and Shiba Inu (SHIB). Altcoin Sherpa, a pseudonymous analyst with a strong following of 11,000 subscribers on YouTube, is cautioning that both cryptocurrencies could face significant losses if they fail to maintain their immediate support levels.
According to Altcoin Sherpa, Dogecoin is currently at a crucial level of support, around $0.057. While some may see this as an opportunity to buy, he suggests exercising caution. He believes that if Dogecoin breaks below this support level, it could drop further to around $0.045. Altcoin Sherpa does not personally find Dogecoin an attractive investment at the moment, but recommends waiting and observing the market.
As for Shiba Inu, Altcoin Sherpa highlights a bearish pattern characterized by lower highs and lower lows. Despite experiencing a brief upward movement, Shiba Inu quickly retraced and broke below its 200-day exponential moving average. It is now approaching lower levels, specifically around $0.00000742. Altcoin Sherpa maintains a bearish outlook on Shiba Inu’s market structure.
At the time of writing, Dogecoin is trading at $0.0630, showing a minor 0.2% increase in the last 24 hours. On the other hand, Shiba Inu is trading at $0.00000813, reflecting a 1.2% decrease over the same period.
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Altcoin Sherpa’s analysis serves as a warning to investors who may be considering Dogecoin and Shiba Inu as potential investments. It is important to note that these are memecoins, meaning their value is based on community-driven activities and social media hype rather than fundamental factors. Therefore, their volatility and susceptibility to market trends are higher compared to other cryptocurrencies.
Investors should exercise caution and conduct thorough research before making any investment decisions in cryptocurrencies, especially in the case of memecoins like Dogecoin and Shiba Inu. It is crucial to consider factors such as market trends, technical analysis, and potential risks before engaging in any high-risk investments.
In conclusion, Altcoin Sherpa’s analysis highlights the potential weaknesses and risks associated with Dogecoin and Shiba Inu. As the market conditions continue to fluctuate, investors should carefully evaluate their investment strategies and consider alternative cryptocurrencies with stronger fundamentals for long-term growth and stability.
