- Amid the downward trend in the crypto market, major memecoins like Dogecoin and Shiba Inu plunged over 4% on a daily chart
- Dogecoin (DOGE) has witnessed a drop after the daily total inflow dropped to $0 as of March 25, showing a depleting institutional investment in the memecoin
- Shiba Inu’s daily chart is also giving a strong bearish signal as it entered into oversold territory
While the cryptocurrency faces a consolidation amid the tension in the global financial markets, the leading memecoins, Dogecoin and Shiba Inu, witnessed a downfall on Thursday, where these memecoins dropped by over 4% on a daily chart.
Dogecoin Price Faces a Drop Due to Zero ETF Inflow
At present, Dogecoin (DOGE) is trading at around $0.09139 with a drop of 5.94% and holding a market capitalization of $14.05 billion, according to CoinMarketCap.
The combination of various factors has sparked the downfall of the biggest memecoin.
According to the technical analysis, the chart is showing a descending triangle, where the price is making lower “peaks” while growing against a flat “floor” around $0.088 to $0.09. This pattern shows that sellers are slowly taking place. Based on current price action and our DOGE price prediction, we project that if Dogecoin price drops below that $0.088 support level, it could see a further drop of 23% toward $0.07.
The trader writes in a CoinMarketCap Community post, “DOGE is feeling the bite of the broader market correction, sliding 3.55% as it struggles to hold the $0.092 support level. Despite a 5.69% increase in volume, the sharp rejection from the $0.098 local peak indicates that sell-side pressure is currently outweighing any meme-fueled momentum.”
On the upside, the chart is likely to face resistance levels around $0.10, with strong resistance at $0.11 and $0.123.
Also, popular indicators are telling the same story about memecoin. The 50-day and 200-day moving averages are both showing downward and sit over the current price, which is a classic bearish signal. RSI 14 is neutral around 27, which is showing that it is in a strong oversold territory, clearly not giving a “buy” signal.
According to the on-chain data, in just 2 weeks, new wallet addresses have crashed by 87%, which shows that the hype is currently fading away. Apart from this, its daily trading volume also dropped by 10.47%.
One of the major factors is the drastic fall in the exchange-traded funds (ETFs) inflows. According to SoSoValue, the daily total inflow dropped to $0 as of March 25. In the early days, Dogecoin ETFs saw attractive inflows, but inflows slowed sharply in recent months. The cumulative inflows are revolving around $7.64 million despite holding the throne of the biggest memecoin.
Shiba Inu (SHIB) Price Drops with Bearish Signal
On the other hand, the Shiba Inu (SHIB) price is revolving around $0.000005931 after a drop of 3.83% on a daily chart. Also, it holds a market capitalization of $3.49 billion with a daily trading volume of $103.98 million, according to CoinMarketCap.
The daily chart is showing that SHIB is stuck in a tight consolidation range with lower highs. It is struggling to surge above $0.0000055 to $0.0000065. If it falls below that support level, it could drop by another 10% to 15% toward $0.0000052. On the other side, there is a major resistance level sitting around $0.0000065, with the next big resistance level at $0.0000070, where the 50-day moving average resides.
Many major indicators are also showing the selling pressure in the crypto market. The 50-day SME is around $0.0000070, and the 200-day SMA is even higher at around $0.000009. Both levels are above the current price. This is a bearish sign that sellers are in control.
Apart from this, RSI is revolving around 30, which is clearly showing that the memecoin is in clearly oversold territory.
Also Read: Ethena’s ENA Price Jumps 2% on Exchange Debut Amid Market Dip
