The foremost meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB) have failed to show any sign of life following the recent market decline. These crypto tokens have traded sideways despite other altcoins enjoying relief bounces.
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. Data from the market intelligence platform IntoTheBlock shows that Dogecoin and Shiba Inu’s price correlation 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 movement. Furthermore, on-chain metrics also paint a bearish outlook for Dogecoin and Shiba Inu, another reason why the foremost meme coins have maintained tepid price actions.
Data from IntoTheBlock shows that Dogecoin’s net network growth is currently on the decline, suggesting that the meme coin isn’t witnessing an influx of new users into its ecosystem. During this period, Dogecoin whales have remained quiet, with the number of large transactions on the low, suggesting that investors’ confidence in the mme coin might not be so great.
Shiba Inu has 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 some of their holdings rather than accumulating more of the meme coin.
Thanks to their recent performance in the market, Dogecoin and Shiba Inu have dropped in the crypto ranking by market cap. Data from CoinMarketCap shows that Dogecoin is now the ninth largest crypto token by market cap (dropping from eighth position). Meanwhile, Shiba Inu is now the thirteenth largest crypto token by market cap (dropping from the eleventh spot).
Better Days Ahead For DOGE And SHIB
Dogecoin and Shiba Inu are still expected to make significant moves to the upside in the long run. Crypto analyst Crypto Kaleo recently predicted that DOGE could still rise to as high as $2 in this bull run, based on his belief that this is a meme coin supercycle.
Interestingly, the analyst noted that Dogecoin has always traded sideways for most of its existence but always makes massive gains whenever it pumps. He alluded to when the meme coin witnessed price gains of 6,000% and 30,000% in the past.
Meanwhile, crypto analyst Captain Toblerone recently predicted that Shiba Inu would still shed another zero in this bull run and rise to as high as $0.00045000. On-chain analytics platform Santiment also hinted at an imminent price recovery for Shiba Inu as they revealed that the meme coin is one of the large-cap assets showing the most undervaluation.
Featured image created with Dall.E, chart from Tradingview.com