Why Shiba Inu And Dogecoin Meme Coins May Crash Ahead?

by

Users holding onto meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) might encounter a bumpy road as both digital currencies indicate possible steep price decreases. For instance, Shiba Inu plummeted by 10% over the last week, while Dogecoin experienced a 14% drop within the same timeframe. Factors such as whale trading patterns and a change in investor sentiment could lead to additional falls. The diminishing excitement around these meme coins and their weak underlying foundation might signal potential problems for them in the coming days.

Whale Activity and Market Sentiment Impacting Shiba Inu and Dogecoin

1) It’s clear that the impact of whales in the meme coin market is substantial. The actions of these major players have been instrumental in driving the movements of both Shiba Inu and Dogecoin, leading to frequent price changes. Lately, large Dogecoin holders (whales) have offloaded approximately $219 million worth of DOGE, which has added to the token’s downward trend. This mass selling could potentially set off a chain reaction as many smaller investors tend to mimic the behaviors of these big players. With Dogecoin’s price currently showing signs of instability, continued sell-offs could pose problems for the token in the future.

Just like Dogecoin, Shiba Inu has seen increased price fluctuations recently, causing worry among investors that it’s being traded speculatively instead of for long-term value. The massive sell-offs from big investors and the absence of strong market factors might further undermine investor trust in both cryptocurrencies. As the overall market mood switches from optimism to apprehension, these meme coins could struggle to maintain their current prices, potentially leading to substantial price drops.

The Fading Hype and Fundamental Weaknesses Meme Tokens

Shiba Inu and Dogecoin have prospered more due to community excitement and speculative investment rather than practical uses in everyday life. Over time, these digital tokens have gained significant popularity thanks to social media buzz and high-profile endorsements like those from Elon Musk. Yet, as the trend of meme coins seems to be losing steam, they may encounter increasing challenges in preserving their worth.

Recently, Shiba Inu is being seen more as a speculative investment, with its value primarily influenced by trading activities rather than significant advancements or practical uses. Despite attempts like the Shib token burn mechanism, persistent selling pressure has continued to impact SHIB’s price. Additionally, a recent drop in Shib token burns has further dampened investor confidence.

Just like Dogecoin maintains a prominent place in the meme coin sector without significant technological improvements backing its market worth, it’s possible that as the crypto market evolves, investors might prioritize utility-focused cryptocurrencies over time. This shift could potentially cause price adjustments as the market reevaluates the true value of such coins.

Nonetheless, some market experts still maintain a positive outlook for the long-term direction of these coins. To provide context, the significant increases in the values of these assets have drawn numerous investors to this sector. If this trend persists, these coins could potentially become dominant players, overcoming the negative trends.

Price Context and Technical Indicators for SHIB and DOGE Token

It appears that both SHIB and DOGE have shown some worrying trends on their price graphs recently. At the moment, Dogecoin is being traded at approximately $0.334, representing a decrease of nearly 1% within the last day. Furthermore, it has seen a significant decline of around 14% over the past week and as much as 20% in the last month. Currently, it holds a market capitalization of about $49 billion and daily trading volume of approximately $2.62 billion.

Meanwhile, the price of Shiba Inu stood at approximately 0.00002195 USD, representing a minor 1% rise over the past day. Conversely, it’s worth noting that Shiba Inu has experienced a more substantial 10% decline in the last week and a 24% decrease during the last month. At present, its market capitalization amounts to around $12.93 billion, while the trading volume over the same period was approximately $490 million.

Read More

2025-01-11 16:02