Bitrabo Editorial
The popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) have remained stagnant amidst a recent market downturn. While other altcoins have seen relief bounces, Dogecoin and Shiba Inu have continued to trade sideways.
Factors Contributing to Sideways Trading for Dogecoin and Shiba Inu
One reason for the lackluster performance of Dogecoin and Shiba Inu could be their strong correlation with Bitcoin. Data from IntoTheBlock suggests a nearly perfect positive correlation between the prices of Dogecoin, Shiba Inu, and Bitcoin. As a result, their price movements have mirrored Bitcoin’s recent uninspiring trajectory.
Additionally, on-chain metrics indicate a bearish outlook for both Dogecoin and Shiba Inu, further dampening their price actions. For instance, data from IntoTheBlock reveals a decline in Dogecoin’s network growth, signaling a lack of new users entering the ecosystem. Furthermore, large transactions involving Dogecoin whales have been scarce, indicating potential waning confidence in the meme coin.
Similarly, Shiba Inu has seen bearish signals in its on-chain metrics. Data from IntoTheBlock shows a bearish trend in the ‘Concentration’ metric, suggesting that SHIB whales and investors are divesting rather than accumulating more of the meme coin.
Due to their recent performance, both Dogecoin and Shiba Inu have dropped in the crypto rankings by market capitalization. Dogecoin now holds the ninth position, down from eighth, while Shiba Inu has slipped to thirteenth place from eleventh.
Potential Upside for DOGE and SHIB
Despite the current stagnation, analysts forecast promising future moves for Dogecoin and Shiba Inu. Crypto analyst Crypto Kaleo anticipates that DOGE could surge to $2 in the ongoing bull market, citing the potential for a meme coin supercycle. He highlighted Dogecoin’s historical trend of trading sideways before experiencing substantial gains in previous rallies.
On the other hand, crypto analyst Captain Toblerone predicts that Shiba Inu may eliminate another zero and reach $0.00045000 in the current bull run. Furthermore, on-chain analytics platform Santiment suggests an impending price recovery for Shiba Inu, identifying it as one of the undervalued large-cap assets.