Why Shiba Inu Coin and Dogecoin Price Falling Today?

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As a seasoned researcher who has closely followed the cryptocurrency market for several years now, I must say that the recent decline in the prices of popular meme coins Shiba Inu (SHIB) and Dogecoin (DOGE) is not surprising but certainly concerning. With my finger on the pulse of the market, I can see a confluence of factors driving this trend.

In the past day, there’s been a significant drop in the value of well-known meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) on the cryptocurrency market. Specifically, SHIB has decreased by 3.72%, bringing its current worth to approximately $0.000016. Similarly, DOGE has dipped by 2.5%, and its price now stands at around $0.106.

Moreover, there have been substantial changes in the trading activity for both cryptocurrencies, with Shiba Inu’s trading volume decreasing by 3.82% to $286.78 million and Dogecoin witnessing a rise in trading activity by 16.41% to $637.79 million. The subsequent sections delve into three primary factors responsible for the drop in prices of these meme tokens.

Increased Whale Activity in Shiba Inu

Lately, it’s been noticed that large Shiba Inu investors (often referred to as ‘whales’) have significantly boosted their trading actions, causing unease among smaller investors. Over a two-day period from October 6 to 7, the number of whale-involved SHIB transactions shot up more than double, reaching a staggering 3.02 trillion SHIB valued around $52.8 million.

The increase in whale behavior, along with the general downward trend in prices, seems to indicate that major investors might be initiating the sell-offs. As these big players dump parts of their assets, this heavy selling could potentially sway market opinion unfavorably.

Furthermore, it appears that more transactions involving significant amounts of SHIB are taking place, which suggests whales are taking advantage of market fluctuations. Given that numerous transactions exceed $100,000, the involvement of these large investors could intensify the impact on SHIB’s price, potentially leading to a further decline. This situation might leave smaller investors vulnerable, as their investments could suffer additional losses due to the current pessimistic trend.

Technical Analysis Signals Bearish Trends

For Shiba Inu and Dogecoin, their technical indicators point towards downward trends that could potentially explain the recent drops in their prices. Additionally, the daily chart for Shiba Inu shows a symmetrical triangle formation, which typically signals a period of consolidation.

Although symmetrical triangles can have breakouts going either way, a potential breakout from this pattern might result in substantial price fluctuations. At present, the price is hovering close to the triangle’s lower boundary, and if there’s an increase in selling pressure, SHIB might revisit its support levels around $0.000015 and $0.000013.

Based on technical analysis, Dogecoin appears to be experiencing a period of correction. The Elliott Wave pattern hints at a possible pullback prior to another upward surge. At present, Dogecoin’s price is below its 200-day moving average, which supports the ongoing downward trend.

The Wave Oscillator indicates downward momentum in Dogecoin (DOGE), suggesting a possible continued drop rather than an imminent price turnaround. Meanwhile, the overall feeling towards both Shiba Inu (SHIB) and DOGE among traders is hesitant, as they are cautious about potential additional drops.

Broader Crypto Market Sentiment and Economic Factors

The attitude or feeling towards cryptocurrencies significantly impacts their performance, and current indicators suggest that investors are generally pessimistic (bearish). Wider economic conditions and volatility within the crypto market have affected both Shiba Inu (SHIB) and Dogecoin (DOGE).

For example, the latest movement of ETH being linked to the PlusToken scam has ignited worries about a possible cryptocurrency sell-off, as 7,000 ETH worth approximately $16.7 million have already been transferred to exchanges. The potential for a $1.3 billion liquidation puts additional strain on the crypto market.

Furthermore, since around 52.86% of Shiba Inu token (SHIB) owners are currently making a profit, there’s a psychological influence at work. As these investors ponder their choices, a change in attitude might trigger actions to sell for profits.

By the close of October, I’m optimistic that Dogecoin might break free from its bearish trend and possibly reach $0.15. The surge in whale accumulation is noteworthy, with wallets containing between 1 million to 10 million DOGE now controlling an impressive 10.63 billion DOGE. This significant buying interest indicates a strong confidence among investors in a potential price rise.

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2024-10-10 14:08