In an unexpected development, Dogecoin and Shiba Inu, two prominent players in the memecoin sector, are experiencing a notable uptick in the number of holders facing losses. This trend is emerging even as the wider market displays a bullish outlook, particularly in anticipation of the SEC’s upcoming decision on the spot BTC ETF. Despite Bitcoin’s recent surge towards the $47K mark, the meme coin segment hasn’t shown this upward trajectory. Increasingly bearish on-chain indicators are pointing towards a potential sharp decline in the prices of DOGE and SHIB.
Loss-Making Addresses Touch High For Dogecoin And Shiba Inu
Over the past 24 hours, Dogecoin’s price has maintained relative stability amidst heavy liquidation by both buyers and sellers. According to Coinglass, Dogecoin experienced a total liquidation of $857K, with an average of $420K worth of positions liquidated by each side. This activity occurred as Dogecoin’s price rebounded from its recent low, leading to impatient buyers closing their positions, which contributed to a period of consolidation.
Similarly, Shiba Inu has seen significant trading activity, with over $50K worth of positions being liquidated. Both buyers and sellers accounted for an average $25K each in these liquidations. This has also impeded SHIB’s ability to recover to its pre-crash price levels.
According to insights from IntoTheBlock, both Shiba Inu and Dogecoin have experienced a significant decrease in the number of profitable addresses, even amidst a bullish market trend. Presently, the number of profitable Dogecoin addresses has fallen by 50.8%, equivalent to around 2.73 million addresses. This drop is attributed to numerous profitable holders exiting the market during the recent price rebound.
Similarly, Shiba Inu’s profitable addresses have decreased to 30% of its total, which amounts to approximately 400,000 addresses. This decline is largely due to SHIB investors taking profits and closing their positions recently.
As profitable addresses decline, it indicates a sell-off trend where holders are looking to capitalize on their gains. This can lead to short-term price drops as supply temporarily exceeds demand.
The exit of substantial profitable addresses can lead to shifts in liquidity. For Dogecoin and Shiba Inu, this could mean a temporary imbalance in buy-sell, potentially making it harder to execute large trades without impacting the price.
Dogecoin Price Analysis
The inability of buyers to maintain Dogecoin’s price above the $0.08 mark has triggered sellers, intensifying their efforts to drive the price down. Currently, the price is declining below the EMA20 trend line as buyers lose confidence. As of writing, DOGE price trades at $0.079, surging over 0.44% from yesterday’s rate.
Technical indicators such as the bearish crossover of moving averages, with the Relative Strength Index (RSI) hovering below the midline, suggest that the sellers currently have the advantage. The focus of the sellers will likely be on pushing the price down to the $0.07 level, and possibly further to $0.06, where it’s expected that buyers might start to engage more actively.
A key indicator of a potential shift in momentum will be if Dogecoin manages to stay beyond the 20-day EMA. Achieving this could pave the way for Dogecoin to retest the resistance area between $0.10 and $0.11.
Shiba Inu Price Analysis
Shiba Inu experienced a rejection at the 20-day EMA, signaling that sellers are exerting pressure at these higher price levels. However, bulls hold confidence near the dips.
The $0.0000085 level is expected to be strongly defended by buyers, as a breakdown below this could potentially trigger a sharp decline in the meme coin’s value, possibly sending it toward $0.0000073.
Should the price rebound from its current position, a move towards the 20-day EMA is likely. However, if it faces resistance at this EMA and turns downward, the support at $0.0000085 might be at risk again. On the other hand, if the price successfully surpasses the 20-day EMA, it would indicate a weakening of bearish control. In this scenario, the SHIB price might prepare for a break above the ascending resistance line.Â
