Dogecoin and Shiba Inu prices are under pressure: Pessimistic sentiment spreads amid a deep correction.

The price of Dogecoin (DOGE) and Shiba Inu (SHIB) is continuing its correction trend after failing to break through key resistance levels. The negative signals are even more evident as the number of short orders (Short) has sharply increased in the trader community, further reinforcing forecasts for upcoming bearish trends for the two popular dog-inspired memecoins.

Short selling orders for memecoins are on the rise among traders.

The long/short ratio on CoinGlass for DOGE and SHIB was recorded at 0.86 and 0.82 respectively on Wednesday — the lowest in over a month. The fact that this ratio remains below the threshold of 1 clearly reflects the widespread pessimistic sentiment in the market, as most traders are betting on the scenario of prices continuing to fall.

Long/short ratio chart for DOGE | Source: CoinGlass Long/short ratio chart for SHIB | Source: CoinGlass

Moreover, another negative signal that reinforces the bearish argument is the weakening of the funding rate. Data shows that the funding rate of both dog-inspired memecoins is sharply declining: DOGE is down to just 0.0005%, while SHIB has fallen to 0.0001% on Wednesday — and is likely to soon enter negative territory. When the funding rate turns negative, short positions (Short) will have to pay fees to the buyers, which not only reflects the gloomy outlook but could also trigger a deep correction for both DOGE and SHIB.

Funding rate chart of DOGE | Source: CoinGlass Funding rate chart of SHIB | Source: CoinGlass

Price prediction for Dogecoin: DOGE rejected at the old trend line

Dogecoin (DOGE) has lost its upward momentum after breaking below the uptrend line — established by connecting the lows since June 22 — during Friday's trading session. At the same time, DOGE also closed below the 50-day exponential moving average (EMA) at the $0.20 mark, raising concerns about a more pronounced bearish trend. Although there was a slight recovery from Sunday to Monday, this memecoin still failed to reclaim the recently breached trend line and continued to slide on Tuesday. As of the time of writing on Wednesday, DOGE remains in the red, trading below the $0.19 mark.

If this negative trend continues, DOGE risks falling to the important support area at $0.18. A close below this level could pave the way for a deeper correction, with the goal of retesting the low from July 1 at $0.15.

DOGE/USDT Daily Chart | Source: TradingViewTechnical indicators are currently leaning towards a bearish scenario. The Relative Strength Index (RSI) on the daily timeframe is at 42 — below the neutral threshold of 50 and continuing to decline — indicating that selling pressure remains dominant. Meanwhile, the MACD indicator continues to maintain a bearish crossover signal, further reinforcing the argument for a downward trend.

However, if DOGE unexpectedly regains momentum, the next resistance area to conquer will be around the $0.24 mark on the daily chart.

Shiba Inu Price Prediction: Bears Completely Control Bearish Momentum

The price of Shiba Inu (SHIB) has lost a key technical support level by closing below the 50-day EMA on July 29, followed by a 10% drop in the next four days. Despite a slight recovery signal from Sunday to Monday, weak demand prevented the upward momentum from being sustained, forcing SHIB to turn back down on Tuesday. As of the time of writing on Wednesday, the correction trend remains dominant, with SHIB fluctuating around the $0.0000119 mark.

If selling pressure continues to increase, SHIB is likely to retreat to the next support zone around $0.0000111. Breaking and closing below this threshold could trigger a deeper fall, bringing the price to test the old low of June 22 at $0.0000100.

Daily SHIB/USDT Chart | Source: TradingViewTechnical indicators such as RSI and MACD are currently leaning towards a bearish scenario, similar to the trend of DOGE, indicating that the risk of a fall still exists.

On the contrary, if SHIB unexpectedly reverses and reclaims the 50-day EMA on the daily timeframe, the bullish trend could be reactivated, opening up the opportunity to approach the important resistance area at $0.0000136.