Over the last day, neither Dogecoin (DOGE) nor Shiba Inu (SHIB) have shown any remarkable price movement. This is mostly caused by the fact that Bitcoin's price is falling in tandem with the price of the leading meme currencies.
Reasons for the Decline in Value of Dogecoin and Shiba Inu
As a result of their high positive association with Bitcoin, the values of Dogecoin and Shiba Inu have fallen. According to data compiled by IntoTheBlock, a market intelligence portal, the price connection between Dogecoin and Bitcoin is now 0.97, while the price correlation between Shiba Inu and the flagship cryptocurrency is 0.91.
Here we can see that Dogecoin and Shiba Inu are highly correlated with Bitcoin in terms of pricing. As the value approaches 1, the higher the connection between the two assets in question, and the correlation between the leading meme coins and the flagship crypto is approaching its apex.
The recent price slump in Bitcoin has a knock-on effect for Dogecoin and Shiba Inu. There is a real possibility that the flagship cryptocurrency may go below $58,000 after sliding below $60,000. "Discernible level of uncertainty and indecision amongst digital asset investors" is to blame for the adverse price movement of Bitcoin, DOGE, and Shiba Inus, according to the on-chain analytics platform Glassnode.
Glassnode made it further clearer that spot demand is poor as investors think twice about putting money into risky assets like Shiba Inu and Dogecoin. Recent mixed movements in these meme currencies show that investors are still on the fence about holding on to them, mostly because of the macro circumstances and worries of a US recession.
Another reason Dogecoin and Shiba Inu prices are failing is that whales, who are known to have a large effect on these meme currencies' pricing, are also looking pessimistic. The number of big transactions using Dogecoin has been relatively stable for some time, according to data from IntoTheBlock, whereas the number of big transactions involving Shiba Inu has dropped by more than 14%.
Key Support and Resistance Levels for DOGE and SHIB
Crypto Daily has noted that Dogecoin should keep an eye on the psychological price level of $0.1. According to the expert, Dogecoin's price will continue to rise as long as it stays above this support level. If Dogecoin can break above the $0.11 barrier level, traders are prepared to wager on a higher price gain, according to Crypto Daily.
Considering the amount of addresses who purchased Shiba Inu meme currency at that price point, $0.000010 is still an important support level. The average price of one Shiba Inu coin was $0.000010, and 346,430 addresses purchased them, according to data from IntoTheBlock. If the meme coin price falls below this level, investors may sell off their holdings in an effort to reduce their losses.