As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The recent crash in Dogecoin and Shiba Inu prices is a classic case of profit-taking following a market rally – a common occurrence in this space.
Over the past day, there’s been a significant drop in the prices of Dogecoin and Shiba Inu. This trend appears to stem from a surge in selling, which seems to be a result of investors cashing out after the recent cryptocurrency market surge.
Dogecoin And Shiba Inu Price Suffer Significant Crash
Over the past 24 hours, the prices of Dogecoin and Shiba Inu have decreased after their previous surge that coincided with broader market gains. It is speculated that some cryptocurrency investors are cashing out, leading to a price adjustment for these popular meme coins. Interestingly, the prices of Dogecoin and Shiba Inu seem to move in tandem with Bitcoin, suggesting a similar trend as the leading digital currency.
The cost of Bitcoin has temporarily dropped following its near-reach of the record peak (highest value ever) on October 29, which was around $73,000 – its highest level in four months. This surge triggered widespread profit-making actions, causing companies such as Reddit to scale back their crypto holdings substantially.
Bhutan, too, cashed in on the surge, transferring approximately 1,000 Bitcoin into Binance, hinting at their plans to liquidate their cryptocurrency assets. This wave of capitalizing on profits was predictable, given that a staggering 99.7% of these investors were already benefiting from the recent rally in the market.
In much the same way, the surge in prices for Dogecoin and Shiba Inu left many of their investors in the green, sparking a flurry of profit-taking that eventually led to price drops due to high selling pressure. For example, data from blockchain reveals a whale moved 1.74 billion DOGE (equivalent to $295.8 million) to the Robinhood platform for the purpose of cashing out profits.
At present, data from IntoTheBlock suggests that Shiba Inu’s large transactions are pointing towards a bearish trend for the meme coin. This seems to imply that big investors (whales) might be offloading their holdings as they aim to cash in on the profits generated by the recent market surge.
These Meme Coins Are Likely To Bounce Back
Despite the recent dip, it’s probable that the prices of Dogecoin and Shiba Inu will rebound due to their current bullish trends. Since these coins often follow Bitcoin’s price movements, they are likely to rise as Bitcoin strives to surpass its existing all-time high once more.
Bitcoin’s popularity is escalating at an unprecedented rate, causing a potential surge in supply that may soon outmatch demand. This escalating interest primarily stems from Spot Bitcoin Exchange-Traded Funds (ETFs). As per Farside data, these ETFs attracted a staggering $893.3 million in net inflows on October 30 alone. Moreover, they surpassed the 1 million mark and now hold over 1 million Bitcoins collectively.
This growth could be important for both Dogecoin and Shiba Inu prices, as their value may increase alongside a surge in demand for the leading cryptocurrency. Since these “meme” coins tend to perform better than Bitcoin during bull markets, some investors might consider investing in them as well.
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2024-10-31 19:11