Dogecoin (DOGE) and Shiba Inu (SHIB) have faced significant price declines over the past 24 hours, largely due to their close correlation with Bitcoin. As Bitcoin’s price falls, it impacts these leading meme coins, causing their values to drop as well.
Reasons Behind the Price Declines
The recent downturn in Dogecoin and Shiba Inu’s prices can be attributed to their strong correlation with Bitcoin. According to market data from IntoTheBlock, Dogecoin’s correlation with Bitcoin is currently 0.97, while Shiba Inu’s stands at 0.91. These high correlation values indicate that the price movements of these meme coins closely follow Bitcoin’s fluctuations.
The significant drop in Bitcoin’s price, which has fallen below $60,000 and is approaching $58,000, has directly influenced Dogecoin and Shiba Inu. Glassnode attributes this bearish trend to increased uncertainty among digital asset investors, affecting both Bitcoin and its correlated assets like DOGE and SHIB.
Additionally, investor sentiment towards risk assets, including Dogecoin and Shiba Inu, has been cautious due to macroeconomic concerns, such as the potential for a recession in the US. This hesitation is reflected in the mixed trading volumes and large transaction trends for these meme coins.
Read more: IMF Recommends Sharp 85% Hike in Electricity Taxes for Crypto Miners
Key Price Levels for DOGE and SHIB
Crypto analyst Crypto Daily suggests monitoring the $0.10 mark for Dogecoin. As long as DOGE maintains this level, it could see a bullish trend, with further gains possible if it breaks through the $0.11 resistance.
For Shiba Inu, the $0.000010 level is critical. Data from IntoTheBlock reveals that 346,430 addresses purchased 132.97 trillion SHIB tokens at this price. A drop below this support could trigger sell-offs as investors seek to minimize losses.
Cre: bitcoinist.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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