Dogecoin (DOGE) and Shiba Inucoin (SHIB) broke below key support levels on Wednesday after falling 9% the previous day. Indicators from on-chain data provider Santiment show a sharp rise in NPL indicators for these dog-themed meme coins, meaning traders realized profits, increasing selling pressure. Technical analysis shows that the relative strength index (RSI) of both DOGE and SHIB supports the bearish trend. If DOGE continues to reject, it may fall to $0.30. While SHIB's price may drop to $0.000019 if it continues to adjust. The overall downturn is expected to continue.
Dogecoin and Shiba Inu prices fell below key support levels on Wednesday after a 9% drop the previous day.
The bad loan metrics of these dog-themed memecoins from Santiment show significant peaks, indicating that traders have realized profits.
The technical outlook suggests that the slump will continue, as the RSI of both memecoins supports a bearish trend.
Dogecoin (DOGE) and Shiba Inu (SHIB) prices fell below key support levels on Wednesday after dropping over 9% the previous day. On-chain data provider Santiment's Net Profit/Loss (NPL) metric shows a significant spike for these dog-themed meme coins, indicating that traders have realized profits.
The technical outlook indicates that the slump will continue, as the RSI indicators for the memecoins show a bearish trend.
Dog-themed meme coin traders are profiting and increasing selling pressure.
On-chain data provider Santiment's network shows significant spikes in the Net Profit/Loss (NPL) of these dog-themed meme coins.
This metric calculates the daily network-level return on investment (ROI) based on the on-chain trading volume of the tokens. In simple terms, it is used to measure market pain. A significant spike in bad loans for the tokens indicates that, on average, their holders are selling their bags with considerable profits. On the other hand, a significant drop means that token holders are, on average, suffering losses, indicating panic selling and investor capitulation.
For Dogecoin, the metric increased from 36.01 million on Monday to 133.68 million on Tuesday. During the same period, SHIB also showed similar growth, rising from 1.18 million to 4.2617 million. These peaks indicate that holders are selling their bags with considerable profits on average, increasing selling pressure.
Dogecoin Price Prediction: DOGE shows signs of weakness.
Dogecoin price faces rejection at the 61.8% Fibonacci retracement level, which ranges from the high of $0.48 on December 8 to the low of $0.26 on December 20 ($0.40), down 10.27% on Tuesday. As of Wednesday when this article was written, its price hovers around $0.35.
If DOGE continues to be rejected, its decline could expand by 13% to retest the next daily support level of $0.30.
The Relative Strength Index (RSI) on the daily chart is 48, below the neutral level of 50 and pointing downward, indicating bearish momentum.
Shiba Inu Price Prediction: A double-digit crash is expected.
On Saturday, Shiba Inu prices were rejected at the 61.8% Fibonacci retracement level ($0.000024) from the low of $0.000010 on August 5 to the high of $0.000033 on December 8, and fell 10.73% until Tuesday. As of Wednesday when this article was written, its price continues to decline slightly, around $0.000021.
If SHIB continues to adjust, its decline could expand by 11% to retest the next daily support level of $0.000019.
The RSI on the daily chart is 41, below the neutral level of 50 and pointing downward, indicating strong bearish momentum.
