Dogecoin and Shiba Inu Plummet as Bitcoin Drops to $62,000

Meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have suffered significant losses. These declines have outpaced those of major crypto assets like Bitcoin (BTC) and Ethereum (ETH), signaling a possible shift in investor sentiment within this unpredictable market segment.

The overall market capitalization for meme coins has fallen to $50.6 billion, reflecting a 6.47% drop in the last day.

Can Meme Coins Rebound?

This decrease is considerably more pronounced than Bitcoin’s 2.79% drop to the $62,000 level. Ethereum also recorded a loss, slipping 3.5% and falling below the $3,000 mark.

Dogecoin, the pioneer meme coin, experienced a 7.06% decrease. Shiba Inu followed closely with a 5.39% decline.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Other meme coins faced even steeper losses. Dogwifhat (WIF), for instance, plummeted by 11.95%, and Pepe (PEPE) recorded a 7.62% decline, showing a broad retreat from these assets.

Certain technical indicators hint at potential recovery points for these volatile assets despite the downturn. Dogecoin appears to have found support at $0.1455. An inverse head and shoulder pattern could emerge if it rebounds from this level and approaches the $0.1650 resistance.

This pattern suggests a potential surge in Dogecoin’s price by over 53% from its current market price. However, a drop below the support level would negate this bullish outlook.

“Is Dogecoin prepared for the next level up?,” Dogecoin enthusiast Namtoshi speculates.

Meanwhile, Shiba Inu is consolidating between $0.00002818 and $0.00002071. A breakout or further decline from this range could significantly influence its future price trajectory.

Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?

Dogecoin and Shiba Inu Price Analysis. Source: TradingView

As the market navigates through these changes, the sharp declines in meme coin valuations highlight the risks and volatility associated with these digital assets. Unlike the more established cryptocurrencies, meme coins are particularly susceptible to shifts in market dynamics and social media influence.

This downturn could reflect a broader reassessment of risk by investors, particularly in the face of volatile market conditions. While meme coins can offer substantial returns, the current market scenario highlights the necessity for cautious investment strategies.