The crypto market finally turned green after spending the majority of the last week in the red.
DOGE and SHIB had shown notable increases in network activity over the past few weeks.
Dogecoin and Shiba Inu prices still needed a strong push from bulls before calling it a recovery.
Top cryptocurrencies saw a much-needed relief bounce as bitcoin (BTC) retested the $20,470 support/resistance mark. While most of the top altcoins, as well as meme coins, saw minor price gains, the bullish uptick didn’t last very long.
Dogecoin, Shiba Recovering from Weekend Blues?
The crypto market finally turned green after spending the majority of the last week in the red. In the late hours of July 4, the top cryptocurrency, bitcoin, briefly climbed above the crucial $20,000 psychological barrier.
Market hopes ignited briefly as the global crypto market capitalization climbed back above the $850 billion mark. However, with the larger market-facing consolidation after the short-term gains, the global crypto market cap stood at $886.75 billion, noting a 1.40% decrease over the last day.
While the recent gains were short-lived, CoinMarketCap data highlighted that on June 4, an inflow of $50 billion entered the market. These inflows reflected an over 5.78% climb in the last day, as the total crypto market volume made an over 50% increase over the same time.
At press time, BTC traded at $19,696, still struggling to make its way above the $20,000 mark. So, how can meme tokens perform with the market back in red?
Limited Gains for DOGE and SHIB
On July 1, data from blockchain analytics tool Santiment, highlighted that DOGE and SHIB had shown notable increases in network activity over the past few weeks. Even though on-chain data shows an uptick in address activity for meme coins DOGE and SHIB, price-wise, the picture doesn’t look too pretty.
DOGE and SHIB along with major altcoins, saw short-term pumps as the Fourth of July weekend drew to a close. Additionally, data from Cointrendz presented that despite the recent uptick in the network activity, Dogecoin, the leading meme token was not among the most mentioned coins on Twitter on July 6.
In the early hours of July 6, DOGE’s trading volume rose by 20%, reaching above $360 million. However, weakening price action and BTC’s return below the $20,000 mark have led to pullbacks for altcoins.
Thus, it looks like the larger market consolidation could wipe away DOGE and SHIB’s weekend gains. At press time, DOGE traded at $0.0687, gaining 1.12% price over the last day. On the other hand, SHIB traded at $0.00001048, noting 2.01% gains on its daily chart.
Meme Coin Summer?
Meme tokens tend to catch the market off guard, with surprise, by tracing sudden gains. More often than not, price pumps for meme tokens are dependent on social sentiment and trade volumes.
Everyone wishes to catch meme coin rallies that make investors gain in double or triple digits; however, looks anticipations of a meme coin summer could be met with disappointment.
In the past week, DOGE prices dipped from around $0.078 to $0.062. While the $0.062 support was defended vigorously by bulls, this defense spurred a short-term upward move back to the resistance at $0.068 and $0.070.
Both DOGE and SHIB still oscillated below their crucial resistance levels; however, at press time, SHIB presented higher gains on the daily chart. Shiba Inu’s price was up by 1.67% in the last 24 hours, trading at $0.00001043 at the time of writing.
In the short-term, if SHIB bulls can push the price above the $0.000011 mark, then a recovery above this crucial level could be expected. The $0.000009 mark could act as a solid support over this week.
That said, while fears of a prolonged crypto winter still dominate investor sentiment, many analysts are of the opinion that BTC accumulation trends could eventually lead the market upward.
This article was originally posted on FX Empire