- DOGE and SHIB’s prices dropped by over 13% and 14%, respectively.
Market indicators suggested that SHIB and DOGE bulls might takeover.
As an experienced analyst, I’ve seen my fair share of market fluctuations in the crypto world. The recent double-digit price drops of Dogecoin (DOGE) and Shiba Inu (SHIB) are concerning, but I believe it’s essential to analyze the situation further before jumping to conclusions.
Last week saw significant volatility in the cryptocurrency market, with popular memcoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) experiencing particularly notable fluctuations.
A significant decrease in the prices of leading meme coins has led to a marked reduction in their market share. It’s important to note that this trend doesn’t necessarily indicate an imminent and substantial price drop for these coins, but it could be a sign of shifting investor preferences or broader market trends.
Dogecoin and Shiba Inu are shedding
Last week, the prices of the two leading meme coins tracked by CoinMarketCap experienced substantial drops, with each coin seeing a decline of over ten percent.
The value of DOGE decreased by approximately 13%, landing it at $0.1246 during my writing. On the other hand, SHIB experienced a more significant drop, with its price falling over 14% to reach $0.00001857.
While the memecoins fell victim to price corrections, their dominance also fell.
As a researcher studying the cryptocurrency market, I’ve noticed an intriguing trend highlighted by the well-known crypto analyst Ki Young Ju in a recent tweet. He pointed out that the dominance of memcoins has been decreasing gradually over the past few months.
According to AMBCrypto’s examination of Santiment’s findings, the sentiment analysis showed an improvement in the weighted feelings towards SHIB and DOGE despite a decrease in their respective prices. This signified that negative sentiments linked to these memcoins had been decreasing over the past few days.
As a researcher examining investment trends, I’ve observed an intriguing increase in social media chatter surrounding Shiba Inu and Dogecoin. This heightened interest is indicated by the spike in their social volumes.
DOGE, SHIB preparing for a further price drop?
After examining DOGE‘s daily graph for insights, our assessment revealed that the memecoin’s Relative Strength Index (RSI) had rebounded following a dip into the oversold territory.
The signal suggested a potential shift in direction, possibly enabling DOGE to bounce back from its latest setbacks. Nevertheless, the MACD exhibited a strong downward edge in the market.
If the DOGE bulls gain strength and instigate a change in the trend, it is possible for the price of DOGE to rise back up towards $0.14 for investors to observe.
If the downward trend in DOGE‘s price persists, it could potentially drop to $0.117 in the near future.
While DOGE’s future might get better, things for SHIB looked bearish.
According to AMBCrypto’s analysis of Glassnode’s data, the NVT ratio for the asset experienced a noticeable increase following a significant decrease. An escalation in this indicator suggests that the asset may be overvalued, potentially leading to a further decline in its price.
To verify this claim, we examined Shiba Inu’s daily price chart. Based on our assessment, the Shiba Inu token’s price had reached the lower boundary of the Bollinger Bands. Historically, this occurrence has frequently led to price increases.
As a crypto investor, I’ve noticed some positive signs in the technical analysis of Shiba Inu (SHIB). Specifically, both its Money Flow Index (MFI) and Relative Strength Index (RSI) have shown improvements. These indicators hinted at the potential for a trend reversal in SHIB based on their upward movements.
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2024-06-21 04:07