Dogecoin (DOGE) and Shiba Inu’s (SHIB) price actions have been unimpressive in the last 24 hours. This is mainly thanks to Bitcoin’s strong price correlation with the foremost meme coins, with the flagship crypto’s price also on the decline.
Why Dogecoin And Shiba Inu’s Prices Are Down
Dogecoin and Shiba Inu’s prices are down due to their strong positive price correlation with Bitcoin. Data from the market intelligence platform IntoTheBlock shows that Dogecoin’s price correlation with Bitcoin is currently at 0.97, while Shiba Inu’s price correlation with the flagship crypto is at 0.91.
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This indicates that Dogecoin and Shiba Inu have a strong positive price correlation with Bitcoin. This price correlation between the foremost meme coins and the flagship crypto is almost at its peak, as the closer the value gets to 1, the stronger the correlation between the two assets in question.
As such, Dogecoin and Shiba Inu’s prices are currently struggling because Bitcoin’s is also. The flagship crypto has dropped below $60,000 and is currently at risk of falling below $58,000. The on-chain analytics platform Glassnode recently suggested that Bitcoin’s (and DOGE and Shiba Inu’s, by extension) bearish price action is due to the “discernible level of uncertainty and indecision amongst digital asset investors.”
Glassnode further highlighted the weakness in spot demand as investors continue to consider their exposure to risk assets like Dogecoin and Shiba Inu. Indeed, these meme coins have experienced mixed flows recently, proving that investors are still deciding whether to hold or not, mainly due to the macro situation with fears about a possible recession in the US.
Meanwhile, Dogecoin and Shiba Inu whales, known to significantly impact these meme coins’ prices, also look bearish, another reason their prices are struggling. Data from IntoTheBlock shows that Dogecoin’s large transactions have flatlined for a while now, while Shiba Inu’s large transactions have declined by over 14%.
Price Levels To Watch For DOGE And SHIB
Crypto analyst Crypto Daily recently highlighted the psychological price level of $0.1 is one to watch for Dogecoin. The analyst claimed that Dogecoin’s price outlook will remain bullish as long the meme coin holds above this support level. Crypto Daily added that traders would be willing to bet on a larger price increase should Dogecoin overcome the resistance at $0.11.
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Meanwhile, $0.000010 remains a crucial support level for Shiba Inu, considering the number of addresses that bought the meme coin at that price level. Data from IntoTheBlock shows that 346,430 addresses bought 132.97 trillion Shiba Inu tokens at an average price of $0.000010. The meme coin could witness a wave of sell-offs if it drops below this level as investors look to cut their losses.
Featured image created with Dall.E, chart from Tradingview.com