• Meme coins moved lower on Jan. 19, with Shiba Inu (SHIB) and Dogecoin (DOGE) declining by over 10% and 8% respectively.
• SHIB/USD dropped to an intraday low of $0.00001097, and DOGE/USD slipped to a bottom of $0.08013.
• Despite the decline, the relative strength index (RSI) of both coins is still deeply overbought.
The cryptocurrency markets have been on a wild ride in recent days, with meme coins being no exception. On Jan. 19, the meme coins followed the broader market trend, moving lower as cryptocurrency markets plunged following recent highs. Shiba inu (SHIB) and Dogecoin (DOGE) were among the biggest losers, declining by over 10% and 8% respectively.
Shiba inu (SHIB), which rose to a nine-week high on Wednesday, fell by nearly 10% today. Markets have been largely overbought in the past few days, with bears seemingly reentering. Following a high of $0.00001295 in yesterday’s session, SHIB/USD dropped to an intraday low of $0.00001097 earlier today. Thursday’s drop came as the meme coin was unable to cross a long-term resistance level at $0.00001300. Despite the relatively large drop in price, the 14-day relative strength index (RSI) is still deeply overbought. As of writing, the index is tracking at a level of 80.22, which is close to a ceiling at the 82.00 mark. SHIB has somewhat rebounded from earlier declines, and is currently trading at $0.00001114.
Dogecoin (DOGE) also declined on Thursday, with prices falling for a fifth straight day. Since rising to a one-month high on Saturday, the meme coin has moved lower in consecutive sessions. Today’s low saw DOGE/USD slip to a bottom of $0.08013, which is nearly 8% lower than Wednesday’s peak. Looking at the chart, the drop saw DOGE near a key support point at $0.08000, with bulls so far resisting a breakout. Recent decline has pushed price strength significantly lower, moving from a reading above 70.00 on Saturday, to 52.35 as of writing. The 50.00 mark on the RSI indicator seems to be a sustainable support point, however, should this fail to hold, DOGE bears will likely intensify the selling pressure.
Overall, the meme coins were unable to sustain the gains from Wednesday, with both SHIB and DOGE declining. Despite the decline, the relative strength index (RSI) of both coins is still deeply overbought. This suggests that markets have not yet been completely oversold, and that meme coins could potentially rebound if the broader market starts to trend higher.