the Dogecoin and Shiba Inu prices It collapsed violently today, sparking bearish sentiment among investors. This price drop occurred due to recent developments related to the First Lady of the United States, Melania Trump, who launched her own meme currency.
Why Dogecoin and Shiba Inu Prices Collapsed Violently
CoinMarketCap data It shows that Dogecoin and Shiba Inu prices have fallen by more than 7% in the past 24 hours. This price drop occurred after Melania Trump launched her cryptocurrency “MELANIA,” which caused a lot of buzz Selling wave for other coins as investors rushed to collect the upcoming First Lady of the United States coin.
The launch of these currencies is known to suck liquidity from other currencies as investors unload their holdings in order to make quick profits from the new launch. A similar event also occurred over the weekend. Dogecoin and Shiba Inu prices collapsed when incoming US President Donald Trump launched his coin “Trump” meme coin.
The launch of “TRUMP” and “MELANIA” also posed a significant risk to Dogecoin and Shiba Inu prices, as all of these coins fall into the meme category. In less than 48 hours, Trump coin meme It continued to upset the Shiba Inu as the second-largest meme coin by market cap and was heavy on Dogecoin’s heels.
Meanwhile, Dogecoin and Shiba Inu prices also collapsed due to falling Bitcoin prices. The flagship cryptocurrency fell from $106,000 to $100,000 on Sunday, dragging down other coins. It was inevitable that these coins would also suffer from price declines since they share a strong positivity Price correlation with BTC.
This price drop undoubtedly represents a major setback for DOGE in particular, as the main meme coin reclaimed the crucial $0.40 level as support just before Melania Trump launched her meme coin. Analysts had previously suggested that restoring this level could lead to a rise in the price of the first meme currency.
Some positives of meme coins
Despite the recent collapse, Dogecoin and Shiba Inu prices could soon see a bullish reversal as crypto whales continue to collect these meme coins. Cryptographic analyzer Ali Martinez It revealed that these investors bought 1.83 billion DOGE over the weekend. This is bullish for Dogecoin, considering how whale accumulation usually precedes price rises.
Data inside TheBlock It indicates that Dogecoin whales are actually accumulating because they are anticipating a bullish reversal soon enough. Large DOGE transactions It rose by more than 41%, with $23.35 billion traded during this period. Meanwhile, Martinez also provided a bullish outlook for Dogecoin price, noting that the meme coin appears to be in a bullish retest of the breakout zone before advancing further.
The price of the Shiba Inu could also be set for a bullish reversal as IntoTheBlock data shows that large transactions for SHIB are up 145%, with $216.18 million traded in the past 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com