Dogecoin Likely to Witness More Volatility Than Shiba Inu: Key Metrics Analysis

  • The memecoin market has been experiencing a downturn, especially noted within Dogecoin and Shiba Inu.
  • While Shiba Inu remains stuck in a trading range, Dogecoin presents certain risks to short-term investors.
  • Memecoins faced increased challenges as Bitcoin struggled to break the $70,000 resistance level.

A detailed comparison of Dogecoin and Shiba Inu highlighting which token may offer better returns moving into June.

Social Metrics Comparison

A thorough analysis of social metrics sheds light on market sentiment for these tokens. Recent data shows that the weighted sentiment for Dogecoin and Shiba Inu stood somewhat bearish, at -0.72 and -0.74 respectively.

Understanding Social Trends

Interestingly, Dogecoin has consistently exhibited negative sentiment since April, while Shiba Inu has seen more positive sentiment over the same period. This negative sentiment trend for Dogecoin can be attributed to increased market volatility.

Market Dominance and Engagement

Dogecoin continues to dominate the memecoin sector with a social dominance of 0.927%, significantly higher than Shiba Inu’s 0.339%. This is largely due to Dogecoin’s long-standing presence and recognition in the memecoin market.

Assessing Volatility and Investor Activity

On May 30th, a notable increase in Dogecoin’s dormant circulation was observed, signaling heightened token movement between wallets, typically indicative of selling pressure. In contrast, Shiba Inu showed relatively fewer on-chain movements, highlighting a more pronounced HODL mentality among its holders.

MVRV Ratios Analysis

Market Value to Realized Value (MVRV) ratios reveal that Dogecoin experienced more negative values over the past six weeks compared to Shiba Inu, suggesting DOGE holders faced greater financial losses, particularly in early May. Currently, SHIB holders are encountering greater unrealized losses.

Analyzing Future Outlooks

Given the dormant circulation spike and negative MVRV ratios, Dogecoin is likely to experience higher volatility in the near term compared to Shiba Inu. This assessment is based on historical data and market trends observed over recent months.

Conclusion

In summary, while both Dogecoin and Shiba Inu exhibit bearish social sentiments, Dogecoin’s increased volatility poses potential risks for short-term investors. Shiba Inu holders demonstrate a stronger HODL mentality, which could provide more stability in comparison. Each token presents unique investment considerations as we move into June, with Dogecoin likely facing more immediate fluctuations.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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