Meme Coins Dogecoin and Shiba Inu Face Selling Pressure as Bitcoin Dominates
Dogecoin (DOGE) and Shiba Inu (SHIB) are experiencing significant selling pressure, underperforming the broader cryptocurrency market. This downturn is largely attributed to Bitcoin's (BTC) performance and a general de-risking trend among investors, pushing speculative assets like meme coins lower. Despite some signs of accumulation by larger holders, technical factors are currently dictating the price action for these popular cryptocurrencies.
Key Takeaways
- Dogecoin and Shiba Inu are lagging behind the overall crypto market, indicating a shift away from speculative assets.
- Both DOGE and SHIB are facing selling pressure and need to reclaim key technical levels to reverse their downward trend.
- Recent regulatory developments for SHIB have not significantly boosted its price, with technicals taking precedence.
Market Underperformance and Technical Challenges
Meme coins, including Dogecoin and Shiba Inu, have continued to trade lower, extending a period of underperformance. This trend is occurring even as other parts of the crypto market show signs of stabilization. Assets like Ethereum (ETH) have held up comparatively better, highlighting a widening performance gap. Traders are rotating away from higher-beta (more volatile) exposures, impacting DOGE and SHIB.
Despite incremental improvements in Shiba Inu's market structure, such as the launch of regulated SHIB futures contracts in the U.S., near-term price action remains dominated by technical factors rather than regulatory milestones. This suggests that fundamental developments are taking a backseat to chart patterns and market sentiment.
Technical Analysis and Price Action
Dogecoin has fallen below key psychological levels, forming a descending triangle pattern. Trading volume has increased significantly during declines, indicating active selling rather than a lack of liquidity. Previous support levels have now turned into resistance, and repeated failures to reclaim these zones reinforce a bearish outlook.
Shiba Inu mirrors Dogecoin's technical profile, slipping below its consolidation floor and failing to regain overhead supply. The synchronized price action between DOGE and SHIB suggests they are being treated as a single risk category by traders, influenced by broader market sentiment rather than token-specific catalysts.
What Traders Should Know
- DOGE and SHIB must reclaim key resistance levels, such as $0.13 for DOGE, on sustained volume to neutralize the current bearish structure.
- Whale accumulation in DOGE indicates longer-term interest, but this has not translated into short-term conviction, with rallies likely to face selling pressure until broken levels are recovered.
- The weakness in meme coins is partly linked to the performance of Ethereum, which is often used as a risk gauge for altcoins. As long as ETH remains under pressure, meme coins are expected to lag and remain vulnerable.
Immediate resistance for DOGE is seen around the $0.1310–$0.1315 zone, with downside risk toward $0.1266 if selling pressure continues. For SHIB, its near-term direction is closely tied to DOGE's stabilization and Ethereum's recovery.