Memecoin market watch: Dogecoin, Shiba Inu eye possible price rise

Top memecoins were losing interest among investors, but the latest data suggested a possible recovery. 

Edited By: Ann Maria Shibu

• DOGE and SHIB’s prices dropped by 5% last week. 
• Both memecoin’s open interests and MVRV ratios also declined.

Like several crypto niches, the memecoin market was also witnessing major corrections over the past few days. This was the case as top memecoins like Dogecoin [DOGE] and Shiba Inu’s [SHIB] weekly and daily charts were red.

A reason behind this drop was the decline in investors’ interest in memecoins. 

The concerning state of memecoins

CoinMarketCap’s data revealed that the world’s largest memecoin Dogecoin’s price dropped by more than 5% last week. Interestingly, SHIB had a similar fate, as its value also declined by 5% in the past seven days.

At the time of writing, DOGE was trading at $0.126 while SHIB had a value of $0.0000163.

As per IntoTheBlock’s data, 75% of DOGE investors were in profit, while just 48% of SHIB investors were in profit.

Memecoins are well known for having promising social dominance because of their popularity. However, the latest data revealed that they fell well behind Bitcoin [BTC].

At the time of writing, while BTC’s social dominance was 17.9%, DOGE and SHIB’s metrics stood at 1.49% and 0.24%, respectively. This clearly suggested that investors were not actively talking about DOGE and SHIB.

Will Dogecoin, Shiba Inu recover anytime soon?

AMBCrypto then compared SHIB and DOGE’s on-chain data to find out more about whether they can recover from this recent loss. We found that DOGE’s weighted sentiment remained in the negative zone, meaning that bearish sentiment was dominant.

However, it was surprising to see SHIB’s weighted sentiment graph moving into the positive side. This suggested that SHIB investors were expecting it to recover soon. 

Apart from this, open interest of both memecoins dropped along with their prices. Whenever the metric registers a decline, it indicates that the chances of a trend reversal are high.

Moreover, SHIB and Dogecoin MVRV ratio also dropped. Generally, very low MVRV ratios act as market bottoms, which also hinted at a possible price increase in the coming days. 

Nonetheless, as per CFGI.io’s data, both memecoins’ fear and greed index at press time had a neutral value, meaning that the market could head in any direction.

Therefore, we checked their liquidation levels. As per our analysis, if a trend reversal happens, then DOGE might reach $0.137 before eyeing $0.14.

Mentioning SHIB, a bullish takeover might result in SHIB retouching $0.0000176. However, a continued downtrend might push SHIB down to $0.0000155 in the coming days.