Insight for Dogecoin and Shiba Inu Holders
Are you a holder of Dogecoin (DOGE) and Shiba Inu (SHIB)? Despite the recent market downturn, these popular meme coins have failed to demonstrate any signs of life. While other altcoins are experiencing relief bounces, DOGE and SHIB have continued to trade sideways, leaving investors wondering about the future. Let’s explore the reasons behind their lackluster performance and what the future might hold for these meme coins.
The Influence of Bitcoin on DOGE and SHIB
One major factor contributing to the unimpressive price actions of Dogecoin and Shiba Inu is their strong correlation with Bitcoin. Data from the market intelligence platform IntoTheBlock indicates that the prices of DOGE and SHIB have a close correlation with the flagship cryptocurrency, almost reaching a correlation coefficient of ‘1’. This implies a significant positive correlation between their prices and that of Bitcoin, resulting in similar price movements.
- Dogecoin and Shiba Inu have mirrored Bitcoin’s uninspiring price movement.
- The on-chain metrics for both meme coins paint a bearish outlook for their future.
Outlook for Dogecoin
IntoTheBlock data reveals that Dogecoin’s net network growth is on the decline, indicating a lack of new users joining its ecosystem. Additionally, Dogecoin whales – holders of large amounts of the cryptocurrency – have been inactive, with fewer large transactions suggesting waning confidence in the meme coin.
Challenges for Shiba Inu
Similarly, Shiba Inu faces on-chain metrics flashing bearish signals, with the ‘Concentration’ metric signaling offloading of SHIB tokens by whales and investors. Both DOGE and SHIB have dropped in crypto rankings by market capitalization due to their recent lackluster performance.
Potential Upside for DOGE and SHIB
Despite their current struggles, Dogecoin and Shiba Inu are expected to make significant moves to the upside in the long run. Crypto analyst Crypto Kaleo predicts that DOGE could reach as high as $2 in this bull run, citing historical massive gains following periods of sideways trading. Captain Toblerone also foresees Shiba Inu shedding another zero and rising significantly in value during this bullish cycle.
- Dogecoin has a history of making substantial gains following periods of sideways trading.
- Shiba Inu could experience a significant price recovery based on on-chain analytics.
Hot Take: Looking Ahead
As a holder of Dogecoin or Shiba Inu, it’s essential to remain patient and keep a long-term perspective despite their current sideways trading. Both meme coins have the potential to experience significant upside in the future, especially in a bullish market environment. Stay informed about market trends and analyst predictions to make informed decisions about your investments in DOGE and SHIB.
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