Dogecoin (DOGE) and Shiba Inu (SHIB) It is currently witnessing a downtrend, highlighting the bearish sentiment towards these meme coins. This price decline is due to several factors, including: Developments In the broader cryptocurrency market.
Dogecoin and Shiba Inu follow in Bitcoin’s footsteps
Dogecoin and Shiba Inu They have been following the Bitcoin trend, which explains why they continue to face this downward pressure. Data from IntoTheBlock Market Intelligence Platform The study shows that Dogecoin and Shiba Inu have a price correlation of 0.9 and 0.84 respectively with Bitcoin, indicating a strong positive price correlation between these meme coins and the major cryptocurrency.
as, Dogecoin and Shiba Inu Cryptocurrency prices have seen a sharp rise with Bitcoin falling below $56,000 on September 5. Dogecoin dropped to $0.96 on the day, while Shiba Inu dropped to $0.00001309. Bitcoin (and the top meme coins) lack any upward momentum at the moment and continue to struggle due to macroeconomic factors.
NewsBTC recently reported on how the leading cryptocurrency collapsed this week due to the effects of… yen trading Cryptocurrencies are still trading and their correlation with the US stock market has also contributed, with stocks also suffering significant losses this week. These developments have affected the confidence of Dogecoin and Shiba Inu investors, as trading volumes for these cryptocurrencies have declined.
The low trading volume also caused Dogecoin and Shiba Inu Prices The prices of these currencies are expected to fall as investors and traders are less enthusiastic about buying or trading these currencies at the moment. Data From CoinMarketCap it shows that DOGE trading volume decreased by more than 3%, while Shiba Inu trading volume decreased. decreased By 12.86% during this period.
Meanwhile, historical data supports a decline in Dogecoin prices and Shiba Inu this monthwith both meme coins posting monthly losses in September over the years. Interestingly, 2021 was the last time Dogecoin and Shiba Inu posted gains in September.
It could get worse for DOGE and SHIB
Bearish sentiment towards Bitcoin price suggests that Dogecoin and Shiba Inu are at risk of further price declines. Cryptocurrency Analyst Ali Martinez Recently predicted Bitcoin price is expected to drop to $40,600 if it fails to hold above the $51,000 support level. Arthur Hayesco-founder of BitMEX, who was also mentioned on X (formerly Twitter) mail Bitcoin is ‘heavy’, reveals he believes leading cryptocurrency could Drop to less than $50k This weekend.
Dogecoin and Shiba Inu are already trading below Key support levels at $0.10 and $0.000020 respectively, and could easily experience a free fall if Bitcoin eventually drops below $50k. For DOGE, $0.077 would be a price level to watch out for, as 1.22 million addresses He bought 23.2 billion DOGE at this price.
Meanwhile, 130.17 trillion SHIB were bought at around $0.000013, and a drop below this level means Shiba Inu is at risk of falling below the psychological $0.000010 level.
Featured image created using Dall.E, chart from Tradingview.com