- The leading meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB), have shown stagnant performance amidst the recent market downturn.
- Despite other altcoins experiencing relief rallies, DOGE and SHIB have failed to capitalize on these rebounds.
- The strong correlation between these meme coins and Bitcoin is one factor behind their lackluster market performance.
Exploring Dogecoin and Shiba Inu’s prolonged stagnant phase amidst market shifts. Analyze the factors contributing to their performance and future prospects.
Dogecoin and Shiba Inu’s Sideways Trade Explained
Dogecoin and Shiba Inu’s stagnant price movements can largely be attributed to their near-perfect correlation with Bitcoin. According to market intelligence platform IntoTheBlock, both DOGE and SHIB exhibit a price correlation close to ‘1’ with Bitcoin, underscoring their dependency on the flagship cryptocurrency’s movements.
This strong positive correlation means that both meme coins have mirrored Bitcoin’s recent lackluster performance. Additional on-chain metrics further emphasize the bearish outlook for both DOGE and SHIB, contributing to their uneventful price action.
For Dogecoin, the data indicates a decline in net network growth, demonstrating a lack of new users entering the ecosystem. Moreover, the activity of Dogecoin whales has diminished, with fewer large transactions, suggesting waning investor confidence.
Similarly, Shiba Inu’s on-chain data also points towards bearish tendencies. The ‘Concentration’ metric reveals that SHIB whales and investors are offloading their holdings instead of accumulating more, leading to cautious sentiment around the crypto asset.
Reflecting their recent underperformance, both Dogecoin and Shiba Inu have slid down the crypto rankings by market cap. According to CoinMarketCap, Dogecoin has fallen to the ninth position, while Shiba Inu has dropped to thirteenth.
Prospective Upswings for DOGE and SHIB
Despite the current stagnant phase, optimism remains for Dogecoin and Shiba Inu’s long-term potential. Prominent crypto analyst Crypto Kaleo predicts that DOGE could surge to $2 in this bull cycle, driven by what he describes as a meme coin supercycle.
Historically, Dogecoin has experienced prolonged periods of sideways trading, followed by substantial gains. The analyst recalls instances where DOGE achieved massive price upticks of 6,000% and 30,000%, indicating the potential for similar future rallies.
Meanwhile, another crypto analyst, Captain Toblerone, forecasts that Shiba Inu could significantly rise, potentially reaching $0.00045000 by shedding another zero in this bull market. On-chain analytics platform Santiment supports this positive outlook, identifying Shiba Inu as one of the most undervalued large-cap assets, hinting at an imminent price recovery.
Conclusion
In summary, the price movements of Dogecoin and Shiba Inu remain closely intertwined with Bitcoin’s performance, contributing to their recent lack of significant action. On-chain metrics further paint a cautious picture for these meme coins. However, historical trends and bullish predictions from analysts suggest potential for considerable price gains in the future, providing a glimmer of hope for investors. As always, the volatile nature of the crypto market means that both DOGE and SHIB’s trajectories will continue to be closely watched.
