Dogecoin and Shiba Inu Face Bearish Threats: Important On-Chain Indicators Indicate Next Price Levels for SHIB and DOGE
Cryptocurrency markets, particularly Shiba Inu and Dogecoin, have been under significant selling pressure recently. Despite Bitcoin stabilizing between $50K and $52K, overall market sentiment has turned bearish, particularly affecting meme coins such as SHIB and DOGE. This has led to a decline in on-chain activity and a bearish outlook hinting at a possible further decline in these meme coins.
Decrease in demand for Memecoin
The meme coin market, which includes tokens like Dogecoin and Shiba Inu, is currently facing volatility. Negative sentiment in key on-chain indicators suggests growing selling pressure for the well-known meme coin. According to IntoTheBlock data, whale trading for Dogecoin has decreased by approximately 65%, from 16.6 billion DOGE to 5.4 billion DOGE, indicating a decline in interest from whale investors. Such a decline could cause volatility to plummet and reduce the likelihood of a bullish trend reversal.
On the other hand, Shiba Inu has seen an increase in the number of addresses suffering losses, reaching a record high of 822,910 addresses, or 62%, currently experiencing negative returns. This trend for Shiba Inu could force holders to liquidate their holdings, sparking new selling pressure across the market.
Dogecoin (DOGE) Price Analysis
Attempts by sellers to send Dogecoin back into a bearish pattern failed to meet a strong response from buyers, causing DOGE’s price to fall further below the important Fibonacci level. The price of Dogecoin is currently trading at $0.0857, down more than 1% compared to yesterday’s figures.
The 20-day exponential moving average (EMA) fell to $0.0855, indicating a negative trend. However, the Relative Strength Index (RSI) has surged above the midline to 53, suggesting buyers are starting to dominate.
If Dogecoin continues to trade below these moving averages, it may have trouble gaining positive momentum. This scenario indicates that bearish sentiment is increasing, with potential selling pressure even during a small price rally. A break below the $0.08 support level could intensify selling activity.Top of Form
Shiba Inu (SHIB) price analysis
The extended lower shadow of the SHIB candlestick indicates that investors are keen to buy when the exponential moving average falls near $0.0000094, indicating continued optimism. At the time of writing, the SHIB price is trading at $0.0000097, up more than 0.5% from yesterday’s rate.
Buyers are aiming to keep the price above the near-term resistance of $0.00001. If this move is successful, the SHIB/USDT trading pair could head towards the important resistance point at $0.000011. Additionally, RSI levels have rebounded and are now surging above the central line, suggesting a surge in buying pressure.
At this time, fierce competition between buyers and sellers is expected. If the buyer wins, the next target is expected to be $0.000015.
Conversely, a sharp decline from $0.00001 means that sellers are strongly protecting this level. A drop below the 20-day EMA signals a decline in strength.