Currently, both DOGE and SHIB are in a downward trend, which to some extent reflects the public's lack of confidence in these meme coins. The price decline is caused by a combination of factors, including the development dynamics of the entire cryptocurrency market.
Dogecoin and Shiba Inu follow in Bitcoin’s footsteps
Dogecoin and Shiba Inu have long followed the trend of Bitcoin, which explains why they continue to fall. According to market intelligence platform IntoTheBlock
According to data from , the correlation between the prices of Dogecoin and Shiba Inu Coin and Bitcoin reached 0.9 and 0.84 respectively, which fully demonstrates that there is a very close price linkage between them and Bitcoin.
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When Bitcoin fell below $56,000 on September 5, the prices of Dogecoin and Shiba Inucoin also fell. On the same day, the price of Dogecoin fell to $0.96, and the price of Shiba Inucoin fell to $0.96.
0.00001309 USD. At present, Bitcoin and these important meme coins lack the momentum to rise and continue to be affected by macroeconomic factors.
As NewsBTC recently reported, the stock market has also suffered heavy losses this week as the impact of the yen carry trade continues to ferment and Bitcoin’s correlation with the US stock market has caused a sharp drop. These factors have hit the confidence of Dogecoin and Shiba Inu investors, resulting in a decrease in the trading volume of these meme coins.
The decline in trading volume has also further contributed to the decline in the prices of Dogecoin and Shibacoin, as investors have shown less interest in buying and trading these meme coins. According to CoinMarketCap, DOGE’s trading volume has fallen by more than 3%, while Shibacoin’s trading volume has fallen by 12.86%.
In addition, historical data shows that it is common for Dogecoin and Shibacoin to fall in price in September, as these two meme coins have mostly been in a loss-making state in September in the past few years. Interestingly, 2021 was the last time Dogecoin and Shibacoin achieved profits in September.
Things could get worse for DOGE and SHIB
If the price of Bitcoin continues to fall, Dogecoin and Shiba Inucoin are likely to be affected. Recently, cryptocurrency analyst Ali Martinez predicted that if Bitcoin fails to hold
If the support level of $51,000 is broken, it may fall to $40,600. Arthur Hayes, co-founder of BitMEX, said on the X platform (formerly
He also mentioned on Twitter that the current situation of Bitcoin is quite serious. He believes that Bitcoin may fall below $50,000 this weekend.
Currently, Dogecoin and
Shiba Inu is trading below their respective critical support levels of $0.10 and $0.000020.
The US dollar and the two currencies are very likely to experience a significant drop. Especially for DOGE, $0.077 is a critical point of attention, because at this price level, there are
1.22 million addresses purchased as much as 23.2 billion DOGE.
At the same time, a total of 130.17 trillion SHIB purchases were concentrated at a price of approximately $0.000013. If Shiba Inu falls below this level, it may face further declines and may even fall below the important psychological level of $0.000010.
