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DOGE and SHIB’s prices dropped by 5% last week.
Both memecoin’s open interests and MVRV ratios also declined.
As a seasoned researcher who has witnessed numerous market fluctuations over the years, it is not uncommon to see memecoins like Dogecoin and Shiba Inu experiencing corrections. However, the recent decline in their prices by more than 5% within a week has caught my attention.
Over the last few days, similar to various crypto sectors, the market for meme coins has experienced significant corrections. As evidenced by the weekly and daily price trends of prominent meme coins such as Dogecoin [DOGE] and Shiba Inu‘s [SHIB], these coins have been displaying losses instead of gains.
A reason behind this drop was the decline in investors’ interest in memecoins.
The concerning state of memecoins
According to information from CoinMarketCap, the price of the top meme coin, Dogecoin, fell by over 5% during the previous week. It’s worth noting that Shiba Inu (SHIB), another popular meme coin, experienced a similar dip, with its value decreasing by approximately 5% within the last seven days as well.
At the time of writing, DOGE was trading at $0.126 while SHIB had a value of $0.0000163.
According to data from IntoTheBlock, approximately 3 out of every 4 Dogecoin (DOGE) investors were making a profit, compared to only about half (48%) of Shiba Inu (SHIB) investors who were doing the same.
Meme coins have gained a reputation for potentially strong social influence due to their widespread appeal. Yet, recent findings show that these coins lag significantly behind Bitcoin (BTC) in terms of market position.
Currently, when I’m composing this text, Bitcoin (BTC) holds a social dominance of 17.9%. In comparison, Dogecoin (DOGE) and Shiba Inu (SHIB) have metrics at 1.49% and 0.24%, respectively. This indicates that there seems to be less conversation among investors about DOGE and SHIB.
Will Dogecoin, Shiba Inu recover anytime soon?
Later, AMBCrypto analyzed the on-chain data of both SHIB and DOGE to determine if there’s a chance for recovery following their recent losses. The results showed that Dogecoin’s weighted sentiment continues to linger in the negative territory, indicating that pessimistic sentiments are predominant among investors.
It was quite unexpected to notice Shib’s weighted sentiment graph shifting towards a positive direction. This hints that Shib’s investors are optimistic about its recovery in the near future.
Additionally, as their prices fell, so did the public’s engagement (or ‘open interest’) in memecoins. When this measure decreases, it often suggests that a change in direction (possibly a reversal) may be imminent.
Furthermore, the Shiba Inu (SHIB) and Dogecoin (DOGE) MVRV (Mempool Value to Realized Value) ratio declined as well. Typically, low MVRV ratios can signal market bottoms, suggesting a potential price surge in the near future.
Despite data from CFGI.io showing that memecoins’ fear and greed index were neutral at the current moment, this suggests that the market may move in either direction.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Consequently, we examined their solvency status. Based on our assessment, should a turnaround occur, Dogecoin (DOGE) could potentially rise to $0.137 and possibly target $0.14.
Discussing Shiba Inu (SHIB), if the market shows bullish signs, it could potentially reach $0.0000176. On the other hand, if the current bearish trend continues, SHIB might drop to around $0.0000155 in the near future.
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2024-08-01 00:08