Dogecoin (DOGE) and Shiba Inu (SHIB) break key support levels, poor loan indicators surge triggering a sell-off. After experiencing a 9% drop the previous day, Dogecoin (DOGE) and Shiba Inu (SHIB) again fell below key support levels on Wednesday. Indicators from on-chain data provider Santiment show that the poor loan indicators for these two dog-themed meme coins have surged sharply, which typically means that traders are realizing profits, thereby increasing the market's selling pressure. Technical analysis further reveals that the relative strength indexes (RSI) for both DOGE and SHIB exhibit bearish trends. If DOGE prices continue to face resistance, 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, following a 9% drop the previous day.
Santiment's poor loan indicators for these dog-themed memecoins show a significant peak, indicating that traders are realizing profits.
The technical outlook suggests that the sluggish trend will continue, as both meme coins' RSI supports a bearish trend.
Dogecoin (DOGE) and Shiba Inu (SHIB) break key support, increasing selling pressure from profit-taking traders.
After experiencing a drop of over 9% the previous day, the prices of Dogecoin (DOGE) and Shiba Inu (SHIB) again fell below key support levels on Wednesday. The realized profit/loss (NPL) indicators from on-chain data provider Santiment Network show that the NPL values for these two dog-themed meme coins have surged significantly, marking that traders are realizing profits in large volumes.
From a technical outlook, the relative strength index (RSI) for both of these meme coins shows a bearish trend, suggesting that the sluggish market conditions may continue.
Santiment Network's NPL indicator derives the daily network-level return on investment (ROI) by calculating the on-chain trading volume of tokens, serving as an important tool for measuring market sentiment. When NPL values surge significantly, it typically indicates that the average holder of the token is selling their positions at considerable profits, which increases the market's selling pressure. Conversely, when NPL values plummet significantly, it indicates that token holders are on average 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 SHIB's NPL value also rose 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 market's selling pressure.
Dogecoin Price Prediction: Showing signs of weakness, may face further declines
Recently, Dogecoin (DOGE) has shown signs of weakness in its price movement, facing pressure from Fibonacci retracement levels as well as bearish signals from the relative strength index (RSI).
Firstly, from the perspective of the Fibonacci retracement level, 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 prices rebounded, they fell again by 10.27% on Tuesday, indicating the market's rejection of this retracement level. If Dogecoin prices continue to be suppressed, they may further decline by 13% to re-test the next daily support level of $0.30.
Secondly, from the perspective of the relative strength index (RSI) on the daily chart, the current value is 48, below the neutral level of 50 and pointing downwards. The RSI is a tool for measuring market momentum; when the RSI is below 50 and pointing downwards, it typically indicates that the market is in a bearish trend. This further confirms that Dogecoin prices may face further decline risks.
Shiba Inu (SHIB) Price Prediction: May face double-digit drop risk
Recently, Shiba Inu (SHIB) price has shown a significant bearish trend after experiencing a period of volatility. From a low of $0.000010 on August 5 to a high of $0.000033 on December 8, the price of Shiba Inu saw an increase, but was subsequently rejected at the 61.8% Fibonacci retracement level of $0.000024, leading to a decline.
As of Wednesday, the Shiba Inu price has continued to slightly decline, approximately at $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 at 41, below the neutral level of 50 and pointing downwards. This indicates that Shiba Inu prices are 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 prices continue to adjust, the decline may further expand. Based on the current market conditions and technical indicator analysis, Shiba Inu prices could potentially re-test the next daily support level of $0.000019. This implies that if market sentiment remains pessimistic, Shiba Inu prices 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, and more. Therefore, investors should consider multiple factors comprehensively and carefully assess their own risk tolerance when making investment decisions.
In summary, the Shiba Inu price has recently shown a significant bearish trend, and investors should closely monitor market dynamics and changes in technical indicators to make rational investment decisions promptly. At the same time, it is also necessary to note the volatility and uncertainty of the cryptocurrency market and treat investment risks cautiously.
