Recent positive news surrounding Shiba Inu and the release of its layer 2 platform Shibarium, have been highlighting the meme coin, as well as another popular one. Even though Shibarium utilizes its token BONE, investors have kept buying up the SHIB as its closely related to the platform.
On the other hand PEPE coin which made its all-time high in May and has been declining since, is also starting to turn bullish. A breakout is maybe ahead of this cryptocurrency, but the question is why now?
PEPE and SHIB are currently the top gainers in the cryptocurrency market, with PEPE being the first with 13.26% and SHIB in second place with 10.24%.
Are these meme coins rising due to the sentiment led by Shibarium or is there something happening fundamentally? And if so, can other meme coins follow?
Since its all-time high of $0.000,044,80 made on May 5, the price of PEPE has declined. At first, fell to $0.000,000,85, which was its prior support level on June 15. A recovery of 120% followed on July 14, but another downtrend started.
The downtrend seen since July 14, didn’t lead the price for another interaction with its support level. Instead, the price started increasing from $0.0,0,000,106 yesterday, August 8, and measured to its highest point today of $0.000,012,70, it increased by over 19%.
More importantly, the price started to break out from the major descending trendline drawn from its all-time high, which could be interpreted as a very bullish sign. If the breakout gets confirmed, we might see the price making a higher high compared to the one on July 14 of $0.000,001,88.
A notable on-chain activity was recorded. According to Lookonchain, a blockchain analytics platform, one whale bought PEPE for 1 million USDC coins, amassing him with a total of 807 billion PEPE for the average price of $0.000,001,239.
Popular trading analyst Ali on Twitter has pointed out that PEPE might be ready for big moves.
His indicator TD Sequential is pointing out at $0.000,00138, which is another 8% from the current levels.
PEPE telegram channel is mostly showing a positive sentiment, with 99 messages being positive compared to 14 negative in the last seven days.
The price of SHIB has been on the rise since June 15, when it fell down to $0.000,006,40. From there, we continuously increased and measured to its highest point on August 5 of $0.000,010 the price rose by 70%.
It is still inside a descending triangle that formed on August 15, 2022, and is now coming close to its unconfirmed resistance level. Overall the price of SHIB is in a downtrend from August last year with lower highs and lower lows, but the current rise might change this price structure if it manages to make a higher high compared to February’s.
If we have seen the start of a five-wave impulse from June 15 this year, then the price is headed for a breakout above its descending structure.
These meme coins have definitely drawn attention to themselves one way or the other. Shiba Inu with its expected Shibarium release and PEPE simply by a favorable market price and the positive sentiment caused by whale accumulation.
Today they are the highest gainers in the crypto market and appear to have the chance of breaking out from their significant descending resistance, with PEPE already starting to break out.
If this momentum continues and it most likely will, we are about to see further highs for there cryptocurrencies.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.