Bitrabo Editorial
The prices of Dogecoin (DOGE) and Shiba Inu (SHIB) have been lackluster recently, largely due to the strong price correlation with Bitcoin, which is also experiencing a decline.
Reasons Behind the Decline
The decline in Dogecoin and Shiba Inu prices can be attributed to their close positive correlation with Bitcoin. Data from IntoTheBlock reveals that Dogecoin’s correlation with Bitcoin stands at 0.97, while Shiba Inu’s correlation is at 0.91.
These high correlations indicate a strong relationship with Bitcoin’s price movements. As Bitcoin faces a drop below $60,000, both Dogecoin and Shiba Inu prices are affected. On-chain analytics show that factors like uncertainty among investors and a weak demand for risk assets are influencing the bearish trend.
Additionally, the behavior of whales, who hold significant amounts of these meme coins, is also contributing to the struggle in prices. Large transactions for Dogecoin have plateaued, while Shiba Inu’s large transactions have decreased by over 14%.
Key Price Levels to Monitor
Analysts point out crucial price levels for Dogecoin and Shiba Inu. For Dogecoin, maintaining support above $0.1 is essential for sustaining a bullish trend. Breaking past the $0.11 resistance could signal further price gains.
On the other hand, Shiba Inu’s critical support level is at $0.000010, marked by significant buying activity at that price. If Shiba Inu falls below this level, a wave of selling pressure may ensue as investors seek to limit losses.