Recently, the market witnessed a significant decline, with several crypto assets shedding their upward momentum and moving toward their immediate support levels. This trend has led to a surge in red candles, particularly in the meme coin sector, where leaders such as Dogecoin and Shiba Inu slipped below bullish price points. As prices continue to decline, there is growing concern among analysts about whether the bulls can halt the decline and initiate a recovery.
Bitcoin’s Decline Triggered Selling Activity For DOGE & SHIB
Interestingly, Bitcoin experienced a remarkable price correction today, as its price slipped back to the $64K mark. The significant drop in BTC’s value today can be due to a massive wave of liquidations amounting to over $161 million, as reported by Coinglass. Notably, the total liquidation in the past 24 hours surpassed $500 million. Following this trend, other cryptocurrencies, including meme coins such as DOGE and SHIB, experienced similar trends, leading to significant liquidations.
Specifically, Dogecoin saw liquidations totaling $15.4 million, including $12.5 million from long positions and $2.9 million from short positions. In addition, Shiba Inu faced liquidations of $2.5 million, with long positions accounting for $2.45. million and short positions for $111 thousand.
Also read: Whales on the Move! Millions in DOGE and SHIB Shifted; Should You Be Worried?
Data from IntoTheBlock indicates that Dogecoin has seen an increase in active addresses, moving from 70,000 to 92,000, even as its price faced downward pressure. This suggests a stable interest in the meme coin despite its decreasing value.
Meanwhile, Shiba Inu experienced a significant rise in the volume of large transactions amidst the market plunge, indicating that major investors were accumulating SHIB at lower prices. The volume of these transactions surged from 1.4 trillion SHIB to more than 6.1 trillion SHIB, creating hope for a potential recovery after the recent market fall.
Dogecoin (DOGE) Price Analysis
Dogecoin has experienced a slight pullback after bears heavily plunged the price toward the $0.18 support line, indicating that sellers might be closing positions.
The DOGE/USDT trading pair may undergo a correction towards the EMA20 trend line. Should the price find support at the current level, it would imply that the bulls have successfully triggered accumulation near the dip, enhancing the chances for a climb to $0.23.
However, this bullish momentum could be negated if the price falls below $0.18, potentially leading to a drop towards the $0.13 level. This level is crucial for the bulls to maintain, as breaking below it could accelerate a decline to $0.1.
Shiba Inu (SHIB) Price Analysis
The recent downward movement of Shiba Inu is encountering resistance at the 200-day EMA on the 4-hour chart. A rebound from the above level will strengthen bullish dominance, sending the price to retest $0.00003.
On the flip side, a strong decline below the ascending support line at $0.000022 will weaken the chances of a bullish comeback. This might result in a drop toward the breakout point at $0.000015.