Dogecoin and Shiba Inu: Analyzing Recent Trends and Future Potential in Meme Coins
Explore the recent dips and long-term potential of meme coins Dogecoin and Shiba Inu amid cautious crypto market sentiment.
In recent days, meme coin giants Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced significant daily losses as the overall sentiment in the cryptocurrency market turned cautious. However, despite these short-term setbacks, several on-chain indicators and insights from seasoned traders suggest there is still long-term bullish potential for these popular digital assets.
As of the latest data, Dogecoin is trading at $0.1714 with a market cap of $25.7 billion, showing a 3.2% decline over 24 hours and an 11.2% drop over the past week. Similarly, Shiba Inu is priced at $0.00001175 with a market cap of $6.92 billion, registering a 3.2% decrease in the last day and a 10% fall over the past seven days. Meanwhile, another meme coin, Pepe (PEPE), has seen more pronounced losses, down 8.2% in a day and 20% over the week.
In a recent social media post, influencer MaxBecauseBTC described Dogecoin as the "Bitcoin of meme coins." He highlighted its role as a trendsetter within the meme coin sector, noting that the DOGE/MEME.C-DOGE pair operates similarly to Bitcoin dominance in the larger crypto ecosystem. A breakdown in this pair often signals strength in smaller-cap meme coins, potentially triggering a robust alt-meme rally.
On the technical front, analysts from InvestingHaven have identified $0.17 as a crucial short-term support level for Dogecoin. Despite the Relative Strength Index (RSI) indicating oversold conditions, weak momentum suggests prices may stay range-bound. Depending on whether this support holds, price movements could swing towards $0.25 or down to $0.15.
For Shiba Inu, analyst MrHans from TradingView has noted that the coin is hovering near key support levels. If these levels hold, a reversal towards $0.000021–$0.000024 is possible. However, a breakdown below $0.00001054 would nullify the bullish forecast. Additionally, the Shiba Inu burn rate has surged by 725% in the past 24 hours, with a notable single transaction eliminating 14.3 million SHIB tokens. This heightened burn activity, coupled with a seven-day burn rate increase of 1,501.2%, indicates rising community engagement and a decreasing supply.
Moreover, data from Shibariumscan reveals a spike in daily transactions to 4.57 million as of June 16, up from 4.51 million the previous day. IntoTheBlock data further supports this trend, showing a dramatic 1,700.5% increase in Shiba Inu's large transaction volume in just one day, alongside a 3.3% growth in daily active addresses.
In conclusion, while recent trends show caution among investors, the underlying indicators for Dogecoin and Shiba Inu suggest potential for future growth. As the market continues to evolve, these meme coins remain assets to watch closely.