BTC price encountered resistance at $285,000, declining towards the critical $28,000 mark. Similarly, the memecoin sector is also facing challenges. Top memecoins, Dogecoin, and Shiba Inu are currently experiencing minor declines near their resistance points as sellers look for opportunities from the price surge.

Sellers prepare for downside correction

Dogecoin and Shiba Inu have had strong performances over the past 24 hours. After Bitcoin surged above $28,000, traders turned their attention to the memecoin and market volume increased significantly. However, the buying pressure was short-lived as data from Coinglass showed that $400,000 worth of long positions in Dogecoin were liquidated, while SHIB experienced $35,000 in long position liquidations. This means that investors are taking profits from the recent rally.

Dogecoin (DOGE) Price Analysis

Dogecoin’s price action turned bearish in recent hours as it failed to break out of the $0.065 level. As a result, sellers opened short positions and DOGE price is currently correcting downwards, hovering around the EMA20 trendline. As of the time of writing, DOGE price is trading at $0.0626, having surged by more than 1.09% in the past 24 hours.

The 20-day EMA is at $0.062 and seems to be leveling off, while the RSI has turned down and hovers above the midpoint, suggesting a balance between buyers and sellers. A strong rebound by buyers above the 20-day EMA could signal the start of a new momentum and DOGE price could target the immediate resistance at $0.065 and then $0.07.

Conversely, to combat this uptrend, the bears need to quickly pull the price below $0.059. If they succeed, Meme Coin could drop to the next important support at $0.055.

Shiba Inu (SHIB) Price Analysis

Today, SHIB price saw strong buying which took the price to a high of $0.0000076. However, the bears soon stepped in, causing the memecoin to plummet. As a result, SHIB price broke below the 23.6% Fib channel and touched the bottom of the EMA100 to start a small rebound. This suggests that buyers are taking advantage of the falling price. Currently, SHIB price is $0.00000742, which is up over 0.55% from yesterday.

The extended shadows on the candlesticks indicate bearish selling near the 38.2% Fibonacci retracement level of $0.0000076. However, from a bullish perspective, the price is holding above the immediate support.

For further gains, buyers need to push the price above the critical price level of $0.0000078 to pave the way for a possible retest of the $0.0000085 resistance level.

The RSI level has declined from the overbought zone and it is currently maintaining momentum above the midline 50, suggesting a rebound in SHIB price. If SHIB price turns down and fails to rebound from $0.0000071, it will trigger a strong bearish rally to $0.0000064.