Both Dogecoin (DOGE) and Shiba Inu (SHIB) have recently faced considerable financial challenges, with significant outflows and substantial price drops. These meme cryptocurrencies are struggling to maintain key support levels, indicating a lack of investor confidence and robust buying interest. The market behavior suggests a cautious sentiment among investors, leading to a downward spiral for these digital assets.
This period of decline is marked by aggressive selling from large holders, a trend that has accelerated throughout the year. Despite the overall volatility of the cryptocurrency market, the recent performance of DOGE and SHIB highlights particular vulnerabilities within the meme coin sector. The consistent selling pressure and absence of substantial inflows into associated investment vehicles underscore a challenging market environment for both assets.
Dogecoin Experiences Major Outflows and Sustained Downtrend
Dogecoin (DOGE) recently saw an outflow of $39.29 million, the highest single-day withdrawal in several months, as the cryptocurrency broke through critical support levels without any significant purchasing activity. The price of DOGE has been on a consistent decline, falling 49% from its peak in September. This downward trajectory is exacerbated by increasingly aggressive selling from major holders, a trend that has been observable throughout the year, with the latest spike in outflows being particularly concerning for market analysts.
Adding to these woes, Dogecoin spot ETFs have recorded virtually no new investments since early January, with the last notable inflow occurring on January 8. The asset is currently trading within a narrow price range, struggling to break above key resistance levels. Technical indicators, such as the Relative Strength Index (RSI) remaining below 50, further confirm the bearish sentiment. Moreover, DOGE’s price is below all major moving averages, suggesting a strong bearish momentum in the market.
Shiba Inu's Price Plunge and Critical Support Levels
Shiba Inu (SHIB) has also experienced a notable price drop, falling 1.5% recently and a staggering 53% since its August peak. The meme coin is precariously holding onto a crucial support zone, with a technical indicator acting as its last line of defense. Similar to DOGE, SHIB is trading below all its key moving averages, which are currently pointing downwards, indicating a pervasive bearish trend. Each minor price rally has been swiftly met with selling, demonstrating a clear lack of buying enthusiasm in the market.
The brief recovery in January, which saw SHIB temporarily reach higher price points, was quickly reversed, a typical characteristic of bear markets where any upward movement is perceived as an opportunity for investors to sell. The inability of SHIB to sustain gains further solidifies the view that it is trapped in a difficult market phase. Investors are closely watching key support and resistance levels, as a break below current critical support could lead to further significant price depreciation, while an unexpected surge above resistance levels would be a major surprise given the current market dynamics.