Dogecoin (DOGE) and Shiba Inu (SHIB) break key support, non-performing loan indicators surge triggering sell-off
After experiencing a 9% drop the previous day, Dogecoin (DOGE) and Shiba Inu (SHIB) fell again on Wednesday, breaking key support levels. According to metrics from on-chain data provider Santiment, the non-performing loan indicators of these two dog-themed meme coins surged sharply, which usually means traders are realizing profits, thus increasing market sell-off pressure.
Technical analysis further reveals that the relative strength index (RSI) of both DOGE and SHIB shows a bearish trend. If DOGE's price remains hindered, it may further drop to around $0.30. For SHIB, if the price continues to adjust, it may fall to the level of $0.000019. Overall, the sluggish trend of these two cryptocurrencies is expected to persist for a while.
Investors should closely monitor market dynamics to respond to potential risks promptly.
Dogecoin and Shiba Inu prices broke key support levels on Wednesday, having dropped 9% the previous day.
Santiment's non-performing loan indicators for these dog-themed meme coins show tremendous peaks, indicating that traders realized profits.
Technical outlook indicates that sluggishness will persist, as the RSIs of both meme coins support a bearish trend.
Dogecoin (DOGE) and Shiba Inu (SHIB) break key support, profit-taking pressure intensifies
After experiencing a drop of over 9% the previous day, the prices of Dogecoin (DOGE) and Shiba Inu (SHIB) fell again on Wednesday, breaking key support levels. The realized profit/loss (NPL) metric from on-chain data provider Santiment Network shows a significant spike in the NPL values of both dog-themed meme coins, indicating that traders are realizing profits in large amounts.
From a technical perspective, the relative strength index (RSI) of both meme coins shows a bearish trend, suggesting that the sluggish market conditions may persist.
The NPL metric from Santiment Network calculates the daily network-level return on investment (ROI) by measuring the on-chain transaction volume of the tokens and is an important tool for gauging market sentiment. A significant spike in NPL values typically indicates that the average holder of the token is selling their positions at considerable profits, which increases market sell-off pressure. Conversely, a significant drop in NPL values indicates that average holders are incurring losses, which may lead to panic selling and investor capitulation.
Specifically, the NPL value of Dogecoin grew from $36.01 million on Monday to $133.68 million on Tuesday, while SHIB's NPL value 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, undoubtedly intensifying market sell-off pressure.
Dogecoin Price Prediction: Showing Signs of Weakness, May Face Further Decline
Recently, Dogecoin (DOGE) has shown signs of weakness in price trends, facing pressure from Fibonacci retracement levels and bearish signals from the relative strength index (RSI).
Firstly, from the perspective of Fibonacci retracement levels, Dogecoin experienced a downward trend after reaching a peak of $0.48 on December 8, falling to a low of $0.26 by December 20. Although Dogecoin's price rebounded afterward, it again dropped by 10.27% on Tuesday, indicating market rejection of this retracement level. If Dogecoin's price continues to be suppressed, it may further decline by 13% to re-test the next daily support level of $0.30.
Secondly, from the daily chart's relative strength index (RSI), this metric currently stands at 48, below the neutral level of 50 and pointing downward. The RSI is a tool for measuring market momentum; when it is below 50 and pointing downward, it typically indicates that the market is in a bearish momentum. This further confirms the risk that Dogecoin's price may face further declines.
Shiba Inu (SHIB) Price Prediction: May Face Double-Digit Drop Risk
Recently, Shiba Inu (SHIB) has shown a clear bearish trend after a period of volatility. From a low of $0.000010 on August 5 to a high of $0.000033 on December 8, Shiba Inu experienced a surge, but was subsequently rejected at the 61.8% Fibonacci retracement level of $0.000024, leading to a decline.
As of Wednesday, Shiba Inu's price continues to decline slightly, around $0.000021. This price trend has sparked widespread attention and discussion in the market regarding Shiba Inu's future price.
From technical indicators, the relative strength index (RSI) on the daily chart is at 41, below the neutral level of 50 and pointing downward. This indicates that Shiba Inu's price 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 Shiba Inu's price continues to adjust, its decline may further expand. Based on current market conditions and technical indicator analysis, Shiba Inu's price may re-test the next daily support level of $0.000019. This means that if market sentiment remains pessimistic, Shiba Inu's price may face the risk of a double-digit drop.
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, etc. Therefore, when making investment decisions, investors should consider multiple factors and carefully assess their own risk tolerance.
In summary, Shiba Inu's price has recently shown a clear bearish trend. 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 cautiously.