- The on-chain metrics of Dogecoin and Shiba Inu are indicating a waning interest among market participants.
- According to analyst Ekta Mourya, this could signal an increase in the recent losses for both meme coins.
- A decline in active addresses and volume suggests lower activity levels among traders. Notably, whales have moved 600 billion SHIB and 326 million DOGE.
A recent study shows that the on-chain metrics for Dogecoin and Shiba Inu suggest a gloomy outlook for both cryptocurrencies, potentially exacerbating their recent declines.
Metrics Indicate a Correction for Leading Meme Coins
Data from the crypto intelligence tracker Santiment reveals a steady decline in Dogecoin’s active addresses and volume in June. These metrics are crucial in assessing an asset’s popularity and demand among market participants. The observed decline often characterizes an asset experiencing a price correction.
Whale Movements and Market Impact
Shiba Inu, the second-largest meme coin by market capitalization, has seen an increase in the token supply on exchanges in June. Typically, higher volumes of tokens on exchanges imply heightened selling pressure as investors are more inclined to liquidate their holdings. If this selling pressure manifests at large scales, further price corrections are likely. According to Santiment, SHIB’s supply on exchanges has reached its highest level in approximately six months, supporting the bearish outlook when coupled with insignificant volume increases.
600 Billion SHIB and 326 Million DOGE on the Move
Whale Alert, a whale tracker, detected a significant transfer of over half a trillion SHIB, equivalent to $13,713,299. The transfers were made to an anonymous blockchain wallet.
🚨 600,000,000,000 #SHIB (13,713,299 USD) transferred from #Robinhood to unknown wallet
<— Whale Alert (@whale_alert) June 10, 2024>
Simultaneously, Whale Alert recorded two major DOGE transfers totaling approximately $47,221,537, representing 200,000,000 and 126,705,738 DOGE, respectively.
🚨 🚨 200,000,000 #DOGE (28,790,166 USD) transferred from #Robinhood to unknown wallet
<— Whale Alert (@whale_alert) June 10, 2024>
Overall, SHIB whale activities have seen a notable surge recently. Data from IntoTheBlock shows that whales moved an astonishing 17 trillion SHIB in the past week. However, a closer examination of these transactions reveals that the large meme coin volumes from Robinhood ended up back in wallets linked to the platform, suggesting that Robinhood is merely reshuffling its SHIB and DOGE assets.
Both Meme Coins Trading in the Red
As tracked by CoinOtag, both DOGE and SHIB experienced sharp declines within a week. DOGE, at the time of writing, had fallen over 15.5% weekly to $0.1364. Similarly, SHIB’s price dropped by 12.75%, landing at $0,00002145. Both meme coins have been caught in the larger crypto market correction.
Conclusion
In conclusion, the current on-chain metrics and whale movements favor a bearish outlook for both Dogecoin and Shiba Inu. The falling active addresses and volumes, coupled with large transfers of SHIB and DOGE, indicate increasing selling pressures and potential for further price corrections. Investors should remain cautious as these metrics continue to unfold.
