Crypto Divergence: SHIB and DOGE Slide as Ethereum Shows Bullish Strength

Shiba Inu (SHIB) and Dogecoin (DOGE) are experiencing significant price corrections after brief rallies in July, contrasting sharply with Ethereum (ETH), which is maintaining strong upward momentum. This divergence highlights the varying sentiment between meme coins and larger, more established cryptocurrencies.

Shiba Inu surrendered a substantial portion of its July gains after briefly exceeding the $0.000015 level. Currently trading near $0.0000135, SHIB has reversed weeks of progress within a matter of days. After briefly reclaiming the 200 EMA, sparking hope for a sustained rally, SHIB encountered strong selling pressure near resistance, halting its advance.

This sell-off has driven the price below critical support levels at the 50 and 200 EMAs. SHIB is currently struggling to remain above the 100 EMA. The Relative Strength Index (RSI) has retreated from overbought territory into neutral ground, and the prevalence of red candles suggests increasing selling pressure and a loss of bullish momentum. Should SHIB fail to hold above $0.000013, it could potentially decline further towards $0.0000125 or even $0.0000113.

Dogecoin (DOGE) Reverses Gains After Rapid Surge

Dogecoin has experienced a sharp correction, dropping by approximately 22% and erasing much of its recent gains. The token initially surged above $0.28 but quickly retreated to the $0.24 range. Despite surpassing the 50, 100, and 200 EMAs during its rally, DOGE was unable to sustain its upward momentum. The decline followed overbought RSI readings and was accompanied by increased trading volume.

This downturn has weakened DOGE's short-term outlook and could potentially influence broader sentiment toward meme-based assets. DOGE had been a leading driver of speculative altcoin activity during its recent run. This reversal may deter short-term traders and negatively impact market momentum. If DOGE continues its downward trajectory, it risks further losses and could create uncertainty among retail investors.

Ethereum (ETH) Holds Firm as Meme Coins Retreat

Ethereum continues to outperform, maintaining its upward trend while SHIB and DOGE face downward pressure. After breaking through resistance near $2,700, ETH has climbed to nearly $3,900, supported by consistent trading volume. The price is currently holding above key support zones around $3,500.

ETH's technical structure remains sound, trading consistently above the 50 EMA and holding above important psychological levels. The RSI has decreased from overbought levels without triggering significant selling activity. The strength of the Ethereum network and the coin's issuance model suggest ETH is robust compared to other cryptocurrencies, attracting active investors. If current trends continue, Ethereum may progress towards $4,000 in the coming days.