Dogecoin and Shiba Inu Prices Plummet Amid Whale Sell-offs and Weak Market Fundamentals
Dogecoin and Shiba Inu Prices Plummet Amid Whale Sell-offs and Weak Market Fundamentals
Dogecoin (DOGE) and Shiba Inu (SHIB), two prominent meme tokens, have recently experienced significant price crashes, driven by large-scale sell-offs and deteriorating market sentiment. Dogecoin's decline is attributed to whale activity offloading massive amounts of tokens, while Shiba Inu struggles with maintaining liquidity and demand on its Shibarium network. Both coins show grim technical indicators and a lack of community hype, making a short-term recovery uncertain despite historical tendencies for meme coins to bounce back.
Meme Coin Market Plunge: DOGE and SHIB Hit Hard
The broader cryptocurrency market's recent instability has disproportionately impacted leading meme tokens, Dogecoin (DOGE) and Shiba Inu (SHIB). Both have endured substantial price drops, marked by an absence of bullish whale activity, a decline in on-chain performance, and an overall worsening market sentiment.
Dogecoin's Fall: Aggravated by Whale Activity
Dogecoin's recent downtrend, which saw its price fall by as much as 17% in a week, is largely fueled by significant sell-offs from large holders. On-chain data reveals that whale wallets holding between 10 million and 100 million DOGE offloaded approximately one billion coins within a seven-day period. This massive sell-off pushed DOGE below a critical support level of $0.18, leading to further liquidations in derivatives markets. The token's market capitalization plummeted from nearly $30 billion to about $24.7 billion, with trading volume indicating a predominance of selling pressure.
Shiba Inu's Struggles: Liquidity and Network Demand Challenges
Shiba Inu has faced its own set of bearish challenges, with its price dropping to $0.0000089, a low not seen since January 2024. The token's decline is compounded by weak liquidity, low trading volume, and a significant slowdown in network activity, particularly concerning its layer-2 network, Shibarium. Technical indicators confirm a prolonged downtrend for SHIB, trading well below its 50-day, 100-day, and 200-day moving averages. Its Relative Strength Index (RSI) dipping below 34 signals weak momentum and an absence of bullish divergence.
Outlook: Recovery Remains Elusive in the Short Term
The recovery prospects for both Dogecoin and Shiba Inu are currently dim. Their reliance on community hype is virtually non-existent amidst the wider crypto market downturn. While crypto history suggests meme coins can rebound strongly with improved market sentiment, and both DOGE and SHIB have potential support levels or oversold conditions that could attract bargain hunters, their immediate recovery hinges on better retail engagement and a robust market-wide relief rally, neither of which appears imminent.