The most important meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB) have shown no signs of life after the recent market decline. These crypto tokens moved sideways despite relief rallies from other altcoins.
Why Dogecoin and Shiba Inu Continue to Trade Sideways
Dogecoin and Shiba Inu are believed to have maintained unimpressive price actions partly because of Bitcoin. Market Intelligence Platform Data In the block shows that the price correlation of Dogecoin and Shiba Inu with the flagship crypto is almost close to “1”, which “implies a strong positive correlation” between their prices and that of Bitcoin.
As such, Dogecoin and Shiba Inu have mirrored Bitcoin’s recent uninspiring price action. Additionally, on-chain metrics also paint a bearish picture of the outlook for Dogecoin and Shiba Inuanother reason why major meme coins have maintained lukewarm price actions.
Data IntoTheBlock’s data shows that the Dogecoin network’s net growth is currently declining, suggesting that the meme currency is not experiencing an influx of new users into its ecosystem. During this period, Dogecoin Whales remained quiet, with the number of large transactions at an all-time low, suggesting that investor confidence in the same coin may not be that great.
The Shiba Inu also suffered a similar fate, with its on-chain metrics flashing bearish signals. Data from IntoTheBlock shows that the “Concentration” metric is currently bearish, meaning that SHIB whales and investors are offloading part of their assets rather than accumulating more coins.
Thanks to their recent market performance, Dogecoin and Shiba Inu have fallen in the crypto rankings by market capitalization. Data from CoinMarketCap shows that Dogecoin is now the ninth largest crypto token by market capitalization (rising from eighth position). Meanwhile, Shiba Inu is now the thirteenth largest crypto token by market capitalization (up from eleventh place).
Better days ahead for DOGE and SHIB
Dogecoin and Shiba Inu are still expected to make significant upward moves in the long term. Crypto Analyst Crypto Kaleo recently predicted that DOGE could still reach $2 in this bull run, based on his belief that it is a coin supercycle.
Interestingly, the analyst noted that Dogecoin has always moved sideways for most of its existence, but still makes massive gains every time it soars higher. He alluded to when the meme coin saw price gains of 6,000% and 30,000% in the past.
In the meantime, crypto analyst Captain Toblerone recently predicted that Shiba Inu would lose another zero in this bull run and climb to $0.00045000. On-chain analytics platform Santiment also hinted at an imminent price recovery for Shiba Inu as they revealed that meme money is one of the most undervalued large-cap assets.
Featured image created with Dall.E, chart from Tradingview.com
