Date: Sat, April 12, 2025 | 05:45 AM GMT

The cryptocurrency market experienced a significant downturn early this year, with Ethereum (ETH) suffering a substantial 45% decline in Q1. This negatively impacted most altcoins and memecoins, including Dogecoin (DOGE) and Shiba Inu (SHIB). However, a recent announcement of a 90-day tariff pause by U.S. President Trump injected optimism into the crypto markets.

Following this announcement, leading memecoins DOGE and SHIB have shown renewed strength, experiencing notable gains. Dogecoin has broken out of a key technical pattern, and investors are watching closely to see if Shiba Inu follows suit.

Source: Coinmarketcap

Dogecoin (DOGE)

Dogecoin's price had been declining for several months after a significant 358% rally in late 2024. This was followed by a 72% correction, forming a falling wedge pattern – a bullish reversal indicator.

The price found support near $0.13, aligning with the wedge's lower boundary. After a period of consolidation, DOGE broke out above the wedge, trading at $0.1615.

The next resistance level is the 50-day moving average around $0.1816. A successful break above this could trigger a larger rally, potentially targeting the 200-day moving average and horizontal resistance near $0.2865 – a potential 78% increase from current levels.

Shiba Inu (SHIB)

Shiba Inu is now at a crucial point. Similar to DOGE, SHIB experienced a surge (over 170% in late 2024) followed by a sharp 69% correction.

This correction also formed a falling wedge pattern, and SHIB is nearing a potential breakout. Currently trading around $0.0000123, it's just below the wedge resistance and its 50-day moving average – a confluence zone recently breached by DOGE.

A breakout above this resistance could propel SHIB towards $0.0000159 and the 100-day moving average, representing a potential 28% increase. Momentum indicators like the MACD are flattening, suggesting weakening bearish pressure and the possibility of a bullish trend.

What's Next?

Both Dogecoin and Shiba Inu are at pivotal points. DOGE has already shown a breakout, and SHIB appears poised for a similar move. The improved market sentiment and bullish chart patterns suggest both tokens could lead the next potential memecoin recovery.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before investing in cryptocurrencies.