Anika Begay
Dogecoin (DOGE) and Shiba Inu (SHIB) price action has been less than impressive over the past 24 hours. This is mainly due to Bitcoin strong price correlation with major meme coins, with the price of the flagship cryptocurrency also dropping.
Why Dogecoin and Shiba Inu prices are falling
Dogecoin and Shiba Inu prices are falling due to their strong positive correlation with the price of Bitcoin. Data from the IntoTheBlock Market Intelligence Platform shows that Dogecoin’s price correlation with Bitcoin is currently 0.97, while Shiba Inu’s price correlation with the top cryptocurrency is 0.91.
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This indicates that Dogecoin and Shiba Inu have a strong positive price correlation with Bitcoin. This price correlation between the major meme coins and the flagship cryptocurrency is almost at its peak, as the closer the value gets to 1, the stronger the correlation between the two assets in question.
Therefore, Dogecoin and Shiba Inu prices are currently struggling because Bitcoin is struggling too. The flagship cryptocurrency has fallen below $60,000 and is currently at risk of falling below $58,000. On-chain analytics platform Glassnode recently suggested that the bearish price movement of Bitcoin (and, by extension, DOGE and Shiba Inu) is due to the “clear level of uncertainty and indecision among digital asset investors.”
Glassnode further highlighted the weakness in spot demand as investors continue to price their exposure to risky assets such as Dogecoin and Shiba Inu. In fact, these meme coins have been experiencing mixed flows recently, showing that investors are still deciding whether to hold them or not, mainly due to the macro situation with fears of a possible recession in the United States.
In the meantime, Dogecoin and Shiba Inu Whalesknown to have a significant impact on the prices of these meme coins, they also seem to be bearish, another reason why their prices are struggling. Data from IntoTheBlock shows that large Dogecoin transactions have been stagnant for some time, while large Shiba Inu transactions have dropped by over 14%.
Price Levels to Watch for DOGE and SHIB
Cryptocurrency analyst Crypto Daily recently highlighted THE psychological price level of $0.1 is one to watch for Dogecoin. The analyst said that Dogecoin’s price outlook will remain bullish as long as the meme coin holds above this support level. Crypto Daily added that traders would be willing to bet on a bigger price increase if Dogecoin breaks above the resistance at $0.11.
Meanwhile, $0.000010 remains a crucial support level for Shiba Inu, considering the number of addresses that purchased the meme coin at that price level. Data from IntoTheBlock shows that 346,430 addresses purchased 132.97 trillion Shiba Inu tokens at an average price of $0.000010. The meme coin could see a sell-off if it falls below this level, as investors look to cut losses.
Featured image created with Dall.E, chart from Tradingview.com
