Facing a Downtrend: Dogecoin and Shiba Inu Struggling in Recent Market
If you’ve been following the crypto market lately, you may have noticed that both Dogecoin (DOGE) and Shiba Inu (SHIB) prices have been on a downward trajectory. The primary reason behind this decline can be attributed to the strong correlation that these two meme coins share with Bitcoin, the leading cryptocurrency.
Reasons Behind the Price Drop
Let’s delve deeper into why Dogecoin and Shiba Inu are experiencing a dip in their prices:
- High Positive Price Correlation: Data from market intelligence platform IntoTheBlock reveals that Dogecoin’s price correlation with Bitcoin stands at 0.97, while Shiba Inu’s correlation is at 0.91.
- Strong Bond with Bitcoin: Both meme coins exhibit a robust positive correlation with Bitcoin, indicating that their prices move in tandem with the flagship cryptocurrency.
- Market Uncertainty: The recent drop in Bitcoin’s price, hovering below $60,000, has created uncertainty among digital asset investors.
- On-Chain Metrics: Glassnode, an on-chain analytics platform, noted a weak spot demand as investors weigh the risks associated with meme coins like Dogecoin and Shiba Inu.
- Indecisive Investor Behavior: The macroeconomic landscape, particularly fears of a US recession, has contributed to mixed investor sentiments surrounding these meme coins.
Impacts on Price Levels
Let’s explore the critical price levels to monitor for Dogecoin and Shiba Inu:
- Dogecoin Outlook:
- $0.1 Support Level: Maintaining above this psychological support level is crucial for Dogecoin’s bullish trajectory. Breaking past the $0.11 resistance could signal further price gains.
- Shiba Inu Dynamics:
- $0.000010 Level: Identified as a pivotal support point for Shiba Inu, a drop below this level may trigger a series of sell-offs among investors.
What the Experts Say?
Leading crypto analyst, Crypto Daily, emphasized the significance of these price levels for both Dogecoin and Shiba Inu:
- Dogecoin Prediction:
- Potential Growth: If Dogecoin can surpass the $0.11 resistance, traders could anticipate a notable increase in its price.
- Shiba Inu Assessment:
- Addressing Support: With a significant number of addresses purchasing Shiba Inu at $0.000010, breaching this support level might trigger a wave of sell-offs.
Stay Informed and Stay Engaged
As the crypto market grapples with fluctuations, it’s essential to stay updated on the latest trends and analysis. Keep a close eye on the price movements of Dogecoin and Shiba Inu to make informed decisions regarding your investment strategy.
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