In the cryptocurrency market, the prices of popular meme coins “Shiba Inu (SHIB)” and “Dogecoin (DOGE)” have fallen noticeably. Over the past 24 hours, SHIB has fallen by 3.72% and is currently worth $0.000016. Meanwhile, DOGE has fallen by 2.5% and is now worth $0.106.
Additionally, there were significant changes in the trading volumes of both coins, with SHIB trading volume decreasing by 3.82% to $286.78 million, while DOGE trading volume jumped 16.41% to $637.79 million. In the next section, we will consider three main reasons contributing to the price decline of these meme coins.
Increase in Shiba Inu whale activity
Recent data shows a significant increase in Shiba Inu Whale trading activity, raising concerns among small investors. From October 6th to 7th, the volume of SHIB transactions involving whales more than doubled, reaching 3.2 trillion SHIB, worth approximately $52.8 million.
This increased whale activity and overall price decline suggest that large holders may be leading the charge. Selling pressure could negatively impact market sentiment as these beneficial holders liquidate some of their investments.
Furthermore, the increase in trades involving large amounts of SHIB highlights a growing trend among whales to take advantage of current market volatility. Many of these trades exceed $100,000, and whales’ participation in the market could put further downward pressure on SHIB prices. In this scenario, small investors are placed in a risky position as their holdings could fall further as the bearish mood prevails.
Technical analysis suggests a bearish trend
Technical indicators for both Shiba Inu and Dogecoin reflect a bearish trend that may have contributed to the recent price decline. More to the point, the daily chart of SHIB price forms a symmetrical triangular pattern, indicating a consolidation phase.
Source: TradingView
A symmetrical triangle can breakout in either direction, but a breakout from this pattern can lead to large price movements. Currently, the price remains near the lower bound of the triangle, and if a surge of selling pressure occurs, SHIB could retest lower support levels around $0.000015 and $0.000013.
For Dogecoin, technical analysis suggests that it is in a correction phase, and the Elliott wave structure indicates a possible retracement before the next rally. DOGE is trading below its 200-day moving average and is trending down.
The wave oscillator is also showing bearish momentum, further confirming that DOGE price may not reverse anytime soon. Conditions surrounding both SHIB and DOGE remain cautious, with traders wary of the possibility of further declines.
Broader crypto market sentiment and economic factors
Market sentiment plays a key role in crypto performance, and recent trends indicate a bearish outlook for investors. Broader economic factors and fluctuations in the cryptocurrency market are impacting SHIB and DOGE.
For example, recent ETH movements related to the PlusToken scam have raised concerns of a potential crypto sale, with 7,000 ETH worth $16.7 million already transferred to exchanges. Possible $1.3 billion liquidation increases pressure on the crypto market.
Additionally, psychological factors are at play as a significant number of investors have profited, with approximately 52.86% of SHIB holders being ‘in the money’. Changes in sentiment may prompt profit-taking actions as these holders weigh their options.
However, by the end of October, Dogecoin price could break out of the bearish pattern and reach $0.15. Whale’s accumulation has skyrocketed, with his wallet holding between 1 and 10 million DOGE and currently managing 10.63 billion DOGE. This strong buying interest suggests confidence in rising prices.
✓ Share:
Ronnie Mugendi
Ronnie Mugendi is a veteran crypto journalist with 4 years of professional experience and has contributed significantly to various media outlets regarding cryptocurrency trends and technology. With over 4,000 articles published in various media outlets, we aim to inform, educate and introduce more people to the world of blockchain and DeFi. Outside of his journalism career, Ronnie enjoys the thrill of riding his bike and exploring new roads and landscapes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
