With a staggering $50.7 billion valuation of the meme coin market, Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) lead the table with more than half of the valuation.
A technical analysis assisted by Benzinga Labs for the Simple Moving Average (SMA) and Relative Strength Index (RSI) indicators highlights the upcoming trend for the meme coins.
What Happened:
For Dogecoin, the 50-day SMA ($0.17) is currently above the 100-day ($0.14) and 200-day SMA lines ($0.11), indicating a bullish trend. The RSI indicator stands at 50.5, suggesting a neutral stance in terms of momentum.
Similarly, Shiba Inu's 50-day SMA is above the 100-day and 200-day SMA lines, signaling a bullish trend. However, the RSI indicator for Shiba Inu stands at 33.3, indicating potential oversold conditions, although the meme coin is striving to maintain its uptrend above the 30 level.
Traditionally, RSI values below 30 are considered oversold, suggesting that the asset may be undervalued or due for a potential price rebound. However, Shiba Inu maintaining its trend above 30 is an indication of the meme coin striving to continue its uptrend.
Also Read: Are Dogecoin And Shiba Inu Primed For The Next Leg Up?
Why It Matters: Despite the recent price fluctuations, 80% of Dogecoin holders and 56% of Shiba Inu holders are currently profitable. Moreover, both meme coins boast more than 65% of holders accumulating the coins for over a year, pointing to a longer-term bullish sentiment among traders.
Recent developments, such as Shiba Inu's blockchain launch through a $12 million capital raise and Dogecoin's acceptance as a payment option on Tesla's website, have contributed to the growing adoption of these meme coins. The inclusion of both coins in the VanEck Meme Coin Index further highlights the importance of the meme coin sector in the crypto industry.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
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