Lately, there’s been a wave of strong selling in the crypto market, particularly affecting holders of Shiba Inu and Dogecoin. While Bitcoin has been hovering between $56K and $60K, a wave of bearish sentiment has spread across the market, causing a notable slowdown for many meme-based cryptocurrencies, including Shiba Inu and Dogecoin. Amidst this selling pressure, on-chain activities in the meme coin market are also dropping, with most indicators now pointing towards reversals in SHIB and DOGE prices. Nevertheless, market experts remain bullish, expecting a strong comeback for both DOGE and SHIB, backed by robust support levels indicating a promising recovery.
Whale Interest Declines For SHIB And DOGE
Since January 22, the collective value of cryptocurrencies has been steadily climbing, hitting a new peak for the year by surpassing the $2.7 trillion threshold. Despite this significant achievement, there has been a slight downturn in prices as of late, and the market’s momentum has declined. April saw a massive selling pressure and correction in crypto prices, plunging them from their key psychological marks.
Of particular note is Bitcoin’s struggle to break past the $60K mark and it’s consistently encountering resistance from sellers at each level. BTC price recently dropped to the $56K mark; however, it later rebounded. Consequently, both buyers and sellers are capitalizing on minor rallies to cash in on their positions and maximize gains amidst the stagnant momentum. According to data from Coinglass, the crypto market has witnessed a total liquidation exceeding $112 million, with contributions from bearish traders being $70 million.
As a result, the market for meme cryptocurrencies such as Dogecoin and Shiba Inu is witnessing volatility. Critical on-chain metrics are shifting unfavorably, suggesting increasing selling pressure on these widely-known meme tokens. According to data from IntoTheBlock, there has been a notable decline in large transactions involving Dogecoin, plummeting by over 60% from a peak of $3.5 billion to $1.2 billion, indicating reduced interest from significant investors. This decline might result in decreased volatility and plunge the chances of a continued bullish momentum.
On the other hand, SHIB price witnessed a drop in whale interest too as the metric dropped from $138 million to $37 million over the last 48 hours. Additionally, volatility for Shiba Inu declined from 88% to 83% in recent days, which might challenge buyers’ patience around the immediate Fib channel.
Dogecoin (DOGE) Price Analysis
The failure of buyers to uphold Dogecoin’s price above the $0.14 threshold has strengthened sellers, escalating their efforts to lower the price. In recent hours, DOGE price rebounded above the low of $0.12 and aimed to breach $0.14. Presently, the price is dipping below the EMA20 trend line, reflecting tumbling buyer confidence. At the time of this writing, DOGE is trading at $0.13, marking an increase of 1.6% compared to yesterday’s rate.
Technical signals, including the bearish crossover of moving averages and the Relative Strength Index (RSI) lingering below the midpoint, indicate that sellers currently hold the upper hand. Sellers are likely targeting a decline to the $0.12 mark, and potentially even further to $0.09, where a surge in buyer activity may be anticipated.
A pivotal signal for a potential reversal in momentum would be Dogecoin’s ability to sustainably remain above the 20-day EMA. Achieving this could set the stage for a retest of the resistance zone spanning from $0.15 to $0.2.
Shiba Inu (SHIB) Price Analysis
Shiba Inu encountered resistance at the 20-day EMA, indicating that sellers are applying pressure at these elevated price levels. Nonetheless, bullish sentiment remains firm during declines.
The $0.00001855 level is anticipated to be vigorously defended by buyers, as a breach below this threshold could potentially trigger a significant downturn in the meme coin’s value, possibly driving it towards $0.000012.
In the event of a price rebound from its current position, a move towards the 20-day EMA is probable. However, if resistance is encountered at this EMA and the price reverses course, the support at $0.00001855 may come under threat once again. Conversely, if the price successfully breaches the 20-day EMA, it would signal a weakening of bearish influence. In such a scenario, the SHIB price may gear up for a breakout above the ascending resistance line at $0.000028.
