Memecoins
Memecoin Market Watch: Dogecoin, Shiba Inu Eye Possible Price Surge
- DOGE and SHIB prices fell 5% last week.
- Memecoin’s open interest and MVRV ratios have also decreased.
Like several crypto niches, the memecoin market has also seen major corrections in the past few days. This was the case for top memecoins like Dogecoin [DOGE] And Shiba Inu [SHIB] The weekly and daily charts were red.
One of the reasons behind this decline is the decline in investor interest in memecoins.
The Worrying State of Memecoins
CoinMarketCap data The price of Dogecoin, the world’s largest cryptocurrency, has dropped by more than 5% in the past week. Interestingly, SHIB has suffered a similar fate, as its value has also dropped by 5% in the past seven days.
At the time of writing, DOGE was trading at $0.126 while SHIB had a value of $0.0000163.
According to IntoTheBlock data75% of DOGE investors were profitable, while only 48% of SHIB investors were profitable.
Memecoins are well known to have promising social dominance due to their popularity. However, the latest data has revealed that they are far behind Bitcoin [BTC].
At the time of writing, while BTC’s social dominance was at 17.9%, DOGE and SHIB’s indicators stood at 1.49% and 0.24%, respectively. This clearly suggests that investors were not actively talking about DOGE and SHIB.
Source: Santiment
Will Dogecoin and Shiba Inu Recover Soon?
AMBCrypto then compared on-chain data for SHIB and DOGE to learn more about their ability to recover from this recent loss. We found that DOGE’s weighted sentiment remained in the negative zone, meaning bearish sentiment was dominant.
However, it was surprising to see that SHIB’s weighted sentiment chart shifted to the positive side. This suggests that SHIB investors were expecting the stock to recover soon.
Source: Santiment
Apart from this, the open interest of both memecoins has been dropping along with their prices. Whenever the metric records a decline, it indicates that the chances of a trend reversal are high.
Additionally, SHIB and Dogecoin’s MVRV ratio has also dropped. Typically, very low MVRV ratios act as market floors, which also hints at a possible price increase in the coming days.
Source: Santiment
However, according to CFGI.io dataThe fear and greed index for both memecoins at the time of publication was at a neutral value, meaning the market could head in any direction.
Read Shiba Inu [SHIB] Price forecast 2024-25
So we checked their liquidation levels. According to our analysis, if a trend reversal occurs, DOGE could reach $0.137 before targeting $0.14.
Source: Hyblock Capital
Mentioning SHIB, a bullish takeover could lead to SHIB rallying to $0.0000176. However, a continued bearish trend could push SHIB to $0.0000155 in the coming days.
Source: Hyblock Capital