- Dogecoin and Shiba Inu were pretty evenly matched across the metrics compared.
- Shiba Inu was stuck in a range, while Dogecoin might pose risks to short-term holders.
As an experienced analyst, I would cautiously lean towards Dogecoin seeing more potential volatility in the near term based on the metrics presented. While both Dogecoin and Shiba Inu had similar price performances and social media engagement, there were subtle differences that could impact their future returns.
Over the past week, the market for meme coins has experienced a downturn. This is likely due to Bitcoin‘s [BTC] failure to surpass the $70,000 mark as a psychological barrier.
Among the top five meme coins with the largest market capitalizations, according to CoinMarketCap, it was only Dogecoin (WIF) that experienced a rise in price during the previous week.
In May, Dogecoin [DOGE] exhibited greater volatility in terms of price movements compared to Shiba Inu [SHIB]. However, Shiba Inu remained contained within a specific price range during the same period. Despite this, Dogecoin has shown a slightly more consistent upward trend overall.
Heading into June, which token is likely to see better returns?
Comparing the social metrics
As a data analyst, I’d interpret the weighted sentiment figures as indicators of whether social media engagement leaned more towards positivity or negativity. The 3-day interval values for Dogecoin and Shiba Inu were -0.72 and -0.74 respectively. This implies that engagement for both cryptocurrencies exhibited a bearish trend.
As a researcher examining the cryptocurrency market trends, I’ve observed that Dogecoin has displayed a persistent downtrend since April. On the other hand, Shiba Inu has generally shown positive price movements during the last two months. This disparity could be due to the higher volatility experienced by Dogecoin.
As a crypto investor, I’ve noticed that the social dominance of Dogecoin (DOGE) amounts to 0.927%, while that of Shiba Inu (SHIB) is only 0.339%. This isn’t surprising given Dogecoin’s long-standing reputation as the leader in the meme coin sector, having held this position for years.
According to this metric, Dogecoin might witness more volatility soon
On the 30th of May, there was a significant increase in the dormant circulation of DOGE, suggesting a surge in the transfer of tokens between wallets. This phenomenon typically signals heightened selling activity.
DOGE prices have only slipped 3% since then, and at press time recovery was underway.
However, the potential wave of selling could be a concern.
Instead of “On the other hand,” you could use “Contrarily” or “However.” For paraphrasing the second part, you might consider: In contrast to the previous period, Shiba Inu experienced a decrease in token transactions on-chain over the last two months, implying a more pronounced tendency among its holders to hang on to their tokens.
Based on an analysis of MVRV ratios over the previous six weeks, it is clear that DOGE experienced more substantial losses compared to SHIB. Notably, DOGE holders endured significant losses, particularly during the early days of May.
At press time, it was the SHIB holders who were sitting on greater unrealized losses.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
In general, the social indicators displayed little variation between them. However, the MVRV (Money-Valued-Realized) ratios revealed a greater readiness among DOGE investors to dispose of their holdings once the ratio surpassed the zero threshold.
Combined with the dormant circulation spike, Dogecoin could see greater volatility than Shiba Inu.
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2024-06-04 09:11