As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen trends come and go, bubbles burst, and recoveries unfold. The current situation with Dogecoin (DOGE) and Shiba Inu’s (SHIB) price actions is no exception.
Over the past day, the performance of Dogecoin (DOGE) and Shiba Inu (SHIB) has been lackluster. This trend is largely due to Bitcoin‘s significant influence over the value of these meme coins, as Bitcoin’s own price drop is also being felt.
Why Dogecoin And Shiba Inu’s Prices Are Down
The prices of Dogecoin and Shiba Inu have dropped because they tend to move in the same direction as Bitcoin, a strong positive relationship. As per data from market intelligence platform IntoTheBlock, the correlation between Dogecoin’s price and Bitcoin stands at 0.97, while for Shiba Inu it is 0.91 with Bitcoin. In simpler terms, these altcoins often follow Bitcoin’s price trend closely.
It seems that Dogecoin and Shiba Inu are closely tied in price movement with Bitcoin. Their prices tend to rise and fall together, and this relationship is currently very strong. As their correlation approaches 1, it means they are increasingly moving in sync, indicating a strong link between these meme coins and the leading cryptocurrency.
As a researcher studying cryptocurrency markets, I’ve observed that both Dogecoin and Shiba Inu seem to be experiencing price instability at present. This could be attributed to the turbulent state of Bitcoin, our industry’s flagship crypto. Recently, Bitcoin has dipped below $60,000 and is now teetering on the edge of falling further, potentially below $58,000.
Glassnode underscores ongoing investor uncertainty regarding risky assets such as Dogecoin and Shiba Inu, as they weigh their investment decisions. Lately, these meme coins have shown fluctuating trends, suggesting that investors are hesitant, primarily due to economic conditions and concerns about a potential US recession.
Currently, the influential investors, or “whales,” in Dogecoin and Shiba Inu, who typically cause significant fluctuations in these meme coin prices, appear to be pessimistic. This bearish sentiment could be one reason why their prices are experiencing difficulties. As indicated by IntoTheBlock’s data, there has been a noticeable decrease in large transactions for Dogecoin, and Shiba Inu’s large transactions have dropped by more than 14%.
Price Levels To Watch For DOGE And SHIB
crypto expert Crypto Daily has pointed out the significant price point of $0.1 for Dogecoin, suggesting it’s an area to keep an eye on. The analyst predicts that Dogecoin’s bullish trend will continue if the meme coin maintains its position above this support level. Moreover, they hinted that traders might be inclined to take a chance on a substantial price rise if Dogecoin manages to surpass the resistance at $0.11.
Currently, the price point of $0.000010 holds significant importance for Shiba Inu, given that a substantial number of investors bought the meme coin at this level. According to IntoTheBlock’s data, approximately 346,430 addresses have acquired around 132.97 trillion Shiba Inu tokens at an average price of $0.000010. If the coin drops below this level, there could be a surge in sell-offs as investors aim to minimize their losses.
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2024-08-16 23:41