The most important meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB) Failed to show any sign of life after the recent market decline. These Encryption codes It has been trading sideways despite other altcoins enjoying a comfortable bounce.
Why do Dogecoin and Shiba Inu continue to trade sideways?
Dogecoin and the Shiba Inu are believed to have preserved Price action is not impressive Partly because of Bitcoin. Data from market intelligence platform In the mass It shows that the price correlation of Dogecoin and Shiba Inu with the major cryptocurrency is approximately close to “1,” which “means there is a strong positive correlation” between their prices and Bitcoin prices.
As such, Dogecoin and Shiba Inu mirrored Bitcoin’s recent uninspiring price action. Moreover, the on-chain metrics also paint a bearish outlook for Dogecoin and Shiba Inuwhich is another reason why the most important coins maintain tepid price movements.
Data IntoTheBlock shows that Dogecoin’s net network growth is currently declining, suggesting that the meme coin is not seeing an influx of new users into its ecosystem. During this period, Dogecoin whales It remained quiet, with a low number of large transactions, indicating that investor confidence in MME may not be very high.
The Shiba Inu also suffered a similar fate. Scales on the chain Flashing bearish signals. Data From IntoTheBlock it appears that the “Focus” metric is currently bearish, which means that SHIB whales and investors They are getting rid of some of their holdings rather than accumulating more meme currency.
Thanks to their recent market performance, Dogecoin and Shiba Inu have dropped in the ranking of cryptocurrencies by market cap. Data CoinMarketCap shows that Dogecoin is now the ninth largest cryptocurrency token by market capitalization (down from eighth place). Meanwhile, the Shiba Inu is now the 13th largest cryptocurrency token by market cap (down from 11th).
Better days ahead for DOGE and SHIB
Both Dogecoin and Shiba Inu are still expected to make significant upward moves in the long term. Crypto Kaleo Cryptocurrency Analyst He recently predicted that DOGE could rise to $2 in this rally, based on his belief that this is supercycle coin meme.
Interestingly, the analyst noted that Dogecoin has always traded sideways throughout most of its existence but has always made huge gains whenever it has been pumped. He pointed out when the meme coin has seen price gains of 6,000% and 30,000% in the past.
while, Cryptocurrency analyst Captain Toblerone newly And he expected Shiba Inu will lose another zero in this rally and rise to $0.00045000. On-chain analytics platform Santiment also pointed to an imminent recovery in Shiba Inu price as open The meme coin is one of the assets with great value that appears to be undervalued.
Featured image created using Dall.E, chart from Tradingview.com