Shiba Inu (SHIB) and Dogecoin (DOGE) Prices Plummet: Are Memecoins Losing Their Momentum?

• The memecoin sector underperformed other sectors such as DePin and Data services last month.
• SHIB and DOGE prices continued to decline.
• Source: Artemis

Explore the recent downturn in the memecoin sector, with a focus on SHIB and DOGE, and understand the broader implications for the cryptocurrency market.

Memecoin Sector Faces Significant Decline

The memecoin sector was one of the most profitable spaces in the cryptocurrency market for quite some time. However, in the last month, the performance of the sector was lackluster.

Over the past month, Ethereum, the DePin sector, and the Data Services sector have outperformed the memecoin sector by a large margin.

Will SHIB and DOGE Bear the Brunt?

The declining popularity of memecoins can impact the market share for major coins such as DOGE and SHIB. The market share of these two blue-chip memecoins was slowly eroding due to the emergence of the Solana memecoin frenzy.

Tokens such as BODEN and TRUMP gained massive popularity, causing many memecoin traders to move away from traditional memecoins.

As the memecoin hype dies down, both SHIB and DOGE may be vulnerable to significant price swings.

At press time, DOGE was trading at $0.166, whereas SHIB was trading at $0.00002532. Since the beginning of April, both of these tokens have shown extremely high correlation and have moved in tandem in terms of price.

The price of both of these tokens declined significantly during this period, while showcasing multiple lower lows and lower highs.

This pattern was indicative of a bearish trend. The price of both of these tokens would need a significant amount of momentum to break out of this trend and see green again in the future.

Social Media Influence on Memecoin Prices

A large determinant of the future of the memecoins’ price is the social media presence each token has.

AMBCrypto’s analysis of Santiment’s data revealed that the social volume for all these tokens had fallen significantly, implying that the popularity of both of these tokens was waning.

A decline in popularity can severely impact the overall interest in the tokens and can harm price movement as well.

However, on the flip side, the weighted sentiment for both of these tokens had grown.

This meant that even though the number of comments around these tokens had fallen, the type of comments being made around these memecoins was largely positive.

If the positive nature of these comments is enough to sway public opinion in DOGE and SHIB’s favor, a reversal could be expected in the future.

Conclusion

The memecoin sector’s recent underperformance highlights the volatility and speculative nature of these assets. While SHIB and DOGE face challenges, their future will largely depend on market sentiment and social media influence. Investors should remain cautious and stay informed about market trends and developments.