The past week has been turbulent for the memecoin market, with both Dogecoin (DOGE) and Shiba Inu (SHIB) experiencing significant price drops of 5%. This decline was mirrored in their open interests and MVRV (Market Value to Realized Value) ratios, indicating a broader trend of waning investor interest in these popular cryptocurrencies.
The memecoin market, much like other crypto niches, has been undergoing major corrections. This trend was evident as the weekly and daily charts for DOGE and SHIB turned red. The primary driver behind this downturn appears to be a decline in investor enthusiasm for memecoins.
Examining the current state of memecoins, data from CoinMarketCap revealed that Dogecoin, the world’s largest memecoin, saw its price fall by over 5% last week. Shiba Inu faced a similar fate, with its value also dropping by 5% over the same period. At the time of writing, DOGE was trading at $0.126, while SHIB was valued at $0.0000163.
According to IntoTheBlock, 75% of DOGE investors were still in profit, compared to just 48% of SHIB investors. Despite their popularity, memecoins like DOGE and SHIB have struggled to maintain their social dominance. While Bitcoin (BTC) boasted a social dominance of 17.9%, DOGE and SHIB lagged significantly behind at 1.49% and 0.24%, respectively. This disparity suggests that investor conversations have shifted away from these memecoins.
Looking ahead, the potential for recovery in Dogecoin and Shiba Inu remains uncertain. On-chain data comparisons revealed that DOGE’s weighted sentiment stayed in negative territory, indicating prevailing bearish sentiment. In contrast, SHIB’s weighted sentiment showed a surprising shift into positive territory, suggesting that some investors are optimistic about its recovery.
Additionally, the open interest for both memecoins has declined alongside their prices. A drop in open interest often signals a higher likelihood of a trend reversal. Furthermore, the MVRV ratios for both SHIB and DOGE have decreased, which typically indicates market bottoms and hints at potential price increases in the near future.
Despite these indicators, the fear and greed index for both memecoins remained neutral at press time, suggesting that the market could move in any direction. Analyzing their liquidation levels, a trend reversal could see DOGE reaching $0.137 before aiming for $0.14. For SHIB, a bullish trend might push its price to $0.0000176, while a continued downtrend could see it fall to $0.0000155 in the coming days.
Of course, while some memecoins are down. Some are up.
1. MONI were up by 6X this week. Now hovering at a market cap of around $3.5 million.
2. Pajamas has a 28% increased in the last 24 hour. This is mainly due to their active community.
3. Mario Coin has also an increase of 7.51% too.
In summary, while the memecoin market faces challenges, there are signs that could point to potential recoveries for DOGE and SHIB. However, the market’s direction remains uncertain, and investors should stay vigilant and informed.
