Traders continued to buy Dogecoin and Shiba Inu as crypto markets moved higher after the release of U.S. inflation reports.
Dogecoin has recently made an attempt to settle above $0.1750 as the rebound in meme coins continued.
Dogecoin and Shiba Inu Enjoy Strong Rebound From Recent Lows
Shiba Inu managed to find support near $0.000027 and moved towards the $0.000033 level after Bitso listing, although it looks that general crypto market rebound served as the main catalyst for the move.
The same catalyst pushed Dogecoin above the $0.17 level, and the key question is whether this is a dead cat bounce or a beginning of a new upside trend.
According to CoinMarketCap, Dogecoin and Shiba Inu are ranked 12 and 13 in the list of biggest cryptocurrencies by market capitalization. Dogecoin has a market cap of $22.5 billion, while Shiba Inu has a market cap of $17.5 billion, so the combined market cap of two biggest meme coins is $40 billion.
The competition from Shiba Inu has clearly hurt Dogecoin. If we assume that all money that went into Shiba Inu would have been put into Dogecoin, Dogecoin’s market cap would have exceeded the market cap of XRP and put the coin directly behind Solana and Cardano.
Judging by market cap, it’s too early to say that meme coins are going out of fashion, despite the major pullback from highs. However, traders will need to watch this metric closely. In case Dogecoin and Shiba Inu lose market share to other coins, they will likely face additional selling pressure.
Dogecoin Tests Resistance at $0.1750
Dogecoin is currently trying to stay above $0.1710. In case this attempt is successful, Dogecoin will have a good chance to get to another test of the resistance at $0.1750. A move above the resistance at $0.1750 will push Dogecoin towards the next resistance which is located at the 50 EMA at $0.1810.
On the support side, the nearest support level for Dogecoin is located at the 20 EMA at $0.1650. If Dogecoin declines below this level, it will move towards the support at $0.16. A successful test of this level will push Dogecoin towards the next support at $0.1550.
Taking a look at H1 chart, we can see that RSI has just moved back into the moderate territory. At this point, Dogecoin may need to go through a period of consolidation before it has a chance to gain additional upside momentum.