As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I find myself cautiously bearish on Dogecoin (DOGE) and Shiba Inu (SHIB). The strong positive correlation between these meme coins and Bitcoin, as evidenced by their price correlations of 0.9 and 0.84 respectively, paints a clear picture of their reliance on the flagship crypto.
At present, Dogecoin (DOGE) and Shiba Inu (SHIB) are showing a drop in their prices, reflecting a generally negative outlook on these meme-based cryptocurrencies. This price decrease can be attributed to multiple reasons, such as changes within the overall crypto market.
Dogecoin And Shiba Inu Following Bitcoin’s Path
It seems that Dogecoin and Shiba Inu are mimicking Bitcoin’s movements, which is why they’ve been facing this continuous pressure on their prices. Information from market intelligence platform IntoTheBlock reveals that Dogecoin and Shiba Inu have a strong positive correlation of 0.9 and 0.84 with Bitcoin, respectively, suggesting these meme coins closely mirror the trend of the leading cryptocurrency.
On September 5, both Dogecoin and Shiba Inu experienced a significant decrease in value as Bitcoin fell below $56,000. Dogecoin dropped to a low of $0.96 on that day, while Shiba Inu sank to $0.00001309. At the moment, Bitcoin (along with popular meme coins) is showing no signs of upward movement and is still being negatively affected by broader economic factors.
According to a recent report from NewsBTC, Bitcoin took a dive this past week due to ongoing impacts from the Yen carry trade and its connection to the U.S. stock market, which also saw substantial losses. This turbulence has shaken the confidence of investors in Dogecoin and Shiba Inu, causing a drop in trading volume for these meme coins.
The decrease in trading activity has led to a drop in prices for Dogecoin and Shiba Inu, as there’s currently less interest among investors and traders in buying or trading these meme coins. According to CoinMarketCap, Dogecoin’s trading volume has fallen by more than 3%, while Shiba Inu’s volume has plummeted by approximately 12.86% over this timeframe.
Over the course of September, historical trends show that Dogecoin and Shiba Inu have generally experienced price drops. In fact, these meme coins have predominantly posted losses in September for several years now. However, it’s worth noting that 2021 marked the last time Dogecoin and Shiba Inu saw gains during this month.
It Could Get Worse For DOGE And SHIB
The bearish sentiment towards Bitcoin price suggests that Dogecoin and Shiba Inu risk further price declines. Crypto analyst Ali Martinez recently predicted that Bitcoin could drop to as low as $40,600 if it fails to hold above the $51,000 support level. Arthur Hayes, the Co-Founder of BitMEX, also mentioned in an X (formerly Twitter) post that Bitcoin is “heavy” and revealed that he believes that the flagship crypto could drop below $50,000 this weekend.
These cryptocurrencies, Dogecoin and Shiba Inu, are currently trading below crucial support points: $0.10 and $0.000020 respectively. If Bitcoin falls below $50,000, a sharp decline for both DOGE and SHIB is possible. For Dogecoin, it’s important to keep an eye on the price at $0.077 because approximately 1.22 million wallets collectively own around 23.2 billion DOGE at that level.
Currently, approximately 130.17 trillion SHIB tokens are being purchased for roughly $0.000013 each. If the price drops below this point, Shiba Inu may fall below the psychologically significant level of $0.000010.
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2024-09-07 05:41