Today, the values of Dogecoin and Shiba Inu coins have plummeted dramatically, leading many investors to feel pessimistic. This sudden drop in price is attributed to a recent event: the introduction of a new meme coin by the future First Lady of the United States, Melania Trump.
Why The Dogecoin And Shiba Inu Prices Crashed Violently
According to CoinMarketCap’s latest update, both Dogecoin and Shiba Inu have experienced a 7% drop in value over the past day. This decrease seems to be connected to Melania Trump’s recent introduction of her meme token, ‘MELANIA.’ The launch ignited a flurry of selling activity among other digital currencies as investors hurriedly bought into the new US first lady’s meme coin.
These types of coin launches often lead to a draining of liquidity from other coins, as investors choose to sell their existing holdings to capitalize on immediate profits from the new launch. A comparable event transpired during the weekend with Dogecoin and Shiba Inu prices plummeting when Donald Trump, the incoming US President, introduced his meme coin called ‘TRUMP.’
1) The introduction of ‘TRUMP’ and ‘MELANIA’ has presented a significant threat to the value of Dogecoin and Shiba Inu, both being categorized as meme coins. Within just 48 hours, the TRUMP meme coin managed to overtake Shiba Inu as the second-largest meme coin by market capitalization, closely chasing Dogecoin’s position.
Simultaneously, the values of Dogecoin and Shiba Inu took a hit due to Bitcoin‘s price drop. The leading cryptocurrency dipped from $106,000 to as low as $100,000 on Sunday, pulling other coins down with it. Given their close relationship in pricing trends, it was expected that these meme-based cryptos would also experience price decreases.
The significant drop in price is clearly a major obstacle for DOGE, since it had recently regained the $0.40 level as a support point right before Melania Trump announced her meme coin. Previously, analysts had predicted that reclaiming this level could potentially drive up prices for the leading meme coin.
Some Positives For The Meme Coins
Although there was a recent drop in value, it’s possible that the prices of Dogecoin and Shiba Inu may soon turn upward due to continued buying by large crypto investors (also known as “whales”). Crypto expert Ali Martinez has pointed out that these whales purchased approximately 1.83 billion DOGE over the weekend, a move that typically happens before a price increase. This suggests optimism for Dogecoin’s future price trend.
The data from IntoTheBlock indicates that significant Dogecoin investors are buying more coins, likely because they expect an upturn in the market in the near future. The number of large transactions involving DOGE has increased by approximately 41%, with a total of $23.35 billion exchanged during this timeframe. In addition to this, Martinez has expressed a positive outlook for Dogecoin’s price, suggesting that the meme coin could be preparing for another bullish push after retesting its breakout zone.
As a researcher, I’ve noticed an intriguing pattern emerging in the Shiba Inu market. According to IntoTheBlock data, large transactions associated with SHIB have surged by a significant 145% within the past day, amounting to approximately $216.18 million. This could potentially signal a bullish reversal for the price of Shiba Inu.
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2025-01-20 17:12