Dogecoin (DOGE) and Shiba Inu (SHIB) Break Key Support, Poor Loan Metrics Surge Triggering Sell-off. After experiencing a 9% drop the previous day, Dogecoin (DOGE) and Shiba Inu (SHIB) once again fell below key support levels on Wednesday. Indicators from on-chain data provider Santiment show that the poor loan metrics for these two dog-themed memecoins have surged, which typically indicates that traders are realizing profits, thus increasing the market's selling pressure. Technical analysis further reveals that both DOGE and SHIB's relative strength indices (RSI) show a bearish trend. If DOGE's price remains obstructed, it may further decline to around $0.30. For SHIB, if the price continues to adjust, it may drop to the level of $0.000019. Overall, the sluggish trend for these two cryptocurrencies is expected to persist for some time. Investors should closely monitor market dynamics to respond promptly to potential risks.
Dogecoin and Shiba Inu prices fell below key support levels on Wednesday, having fallen 9% the previous day.
Santiment's poor loan metrics for these dog-themed memecoins show enormous peaks, indicating that traders are realizing profits.
The technical outlook suggests that the sluggish trend will continue, as the RSI for both memecoins supports a bearish trend.
Dogecoin (DOGE) and Shiba Inu (SHIB) Break Key Support, Selling Pressure from Profit-Taking by Traders Intensifies
After experiencing a drop of over 9% the previous day, the prices of Dogecoin (DOGE) and Shiba Inu (SHIB) once again fell below key support levels on Wednesday. The realized profit/loss (NPL) indicators from on-chain data provider Santiment Network show a significant surge in the NPL values for these two dog-themed memecoins, indicating that traders are realizing substantial profits.
From a technical outlook, the relative strength index (RSI) for both memecoins shows a bearish trend, suggesting that the sluggish market conditions may continue.
Santiment Network's NPL indicators derive the daily network-level return on investment (ROI) by calculating the on-chain transaction volume of tokens, making it an important tool for measuring market sentiment. When the NPL value surges significantly, it typically indicates that the average holder of the token is selling their positions at considerable profits, which increases selling pressure in the market. Conversely, when the NPL value drops significantly, it indicates that the average token holders are suffering losses, which may lead to panic selling and investor capitulation.
Specifically, the NPL value of Dogecoin increased from $36.01 million on Monday to $133.68 million on Tuesday, while the NPL value of SHIB also increased from $1.18 million to $426.17 million during the same period. These peaks clearly indicate that, on average, holders are selling their positions at considerable profits, which undoubtedly exacerbates the selling pressure on the market.
Dogecoin Price Prediction: Showing Signs of Weakness, May Face Further Decline
Recently, Dogecoin (DOGE) has shown signs of weakness in its price movement, facing pressure from Fibonacci retracement levels and bearish signals from the relative strength index (RSI).
First of all, from the perspective of Fibonacci retracement levels, Dogecoin experienced a decline after reaching a high of $0.48 on December 8, touching a low of $0.26 on December 20. Subsequently, although Dogecoin's price rebounded, it fell again by 10.27% on Tuesday, indicating the market's rejection of this retracement level. If Dogecoin's price continues to be suppressed, it may further decline by 13% to retest the next daily support level of $0.30.
Secondly, from the perspective of the relative strength index (RSI) on the daily chart, this indicator is currently at 48, below the neutral level of 50 and pointing downward. The RSI is a tool for measuring market momentum, and when the RSI is below 50 and pointing downward, it typically indicates that the market is in a bearish trend. This further confirms that Dogecoin's price may face the risk of further declines.
Shiba Inu (SHIB) Price Prediction: May Face Double-Digit Crash Risk
Recently, the price of Shiba Inu (SHIB) has shown a noticeable bearish trend after experiencing a period of fluctuation. From a low of $0.000010 on August 5 to a high of $0.000033 on December 8, Shiba Inu's price experienced an increase, but subsequently faced rejection at the 61.8% Fibonacci retracement level of $0.000024, resulting in a decline.
As of Wednesday, the price of Shiba Inu has continued to decline slightly to about $0.000021. This price movement has sparked widespread attention and discussion in the market regarding the future price of Shiba Inu.
From a technical perspective, the relative strength index (RSI) on the daily chart is 41, below the neutral level of 50 and pointing downward. This indicates that the price of Shiba Inu is currently in a bearish momentum, and this momentum is relatively strong. Therefore, investors should closely monitor market dynamics to make rational investment decisions in a timely manner.
If the price of Shiba Inu continues to adjust, its decline may further expand. According to current market conditions and technical indicator analysis, the price of Shiba Inu may retest the next daily support level of $0.000019. This means that if market sentiment remains pessimistic, the price of Shiba Inu may face the risk of a double-digit crash.
However, it is important to note that price fluctuations in the cryptocurrency market are influenced by various factors, including market sentiment, policy changes, technological developments, and more. Therefore, investors should comprehensively consider multiple factors when making investment decisions and carefully assess their own risk tolerance.
In summary, the price of Shiba Inu has recently exhibited a noticeable bearish trend, and investors should closely monitor market dynamics and changes in technical indicators to make rational investment decisions in a timely manner. At the same time, it is also necessary to be aware of the volatility and uncertainty in the cryptocurrency market and to treat investment risks with caution.
