Why Are Dogecoin And Shiba Inu Prices Stuck In Sideways Movement?

Dogecoin and Shiba Inu Stagnant Amidst Market Decline

Dogecoin (DOGE) and Shiba Inu (SHIB), the leading meme coins, have remained subdued despite recent market rebounds. These tokens have experienced sideways trading patterns, unlike other altcoins that have shown signs of recovery.

Factors Contributing to Stagnation

Correlation with Bitcoin:
Data from IntoTheBlock indicates a strong positive correlation between DOGE and SHIB prices with Bitcoin. This correlation has led to their mirrored movements, including the recent downtrend.

On-chain Metrics:
On-chain metrics for both tokens also paint a bearish picture. Dogecoin's net network growth has declined, suggesting a lack of new ecosystem users. Large transactions for DOGE have also been low, indicating waning investor confidence.

Shiba Inu Metrics:
Similar on-chain metrics for Shiba Inu reveal a bearish "Concentration" metric, indicating that whales and investors are selling their holdings rather than accumulating.

Market Ranking Decline:
The prolonged weakness has resulted in DOGE and SHIB dropping in the crypto rankings by market capitalization. DOGE has fallen from eighth to ninth position, while SHIB has moved from eleventh to thirteenth.

Long-Term Outlook

Despite their current struggles, Dogecoin and Shiba Inu are still anticipated to experience significant price increases in the long run.

Dogecoin:
Crypto analyst Crypto Kaleo predicts that DOGE could reach $2 during this bull run, citing the historical supercycle of meme coins.

Shiba Inu:
Captain Toblerone suggests that SHIB could shed another zero and reach $0.00045000. Additionally, Santiment has identified Shiba Inu as an undervalued large-cap asset with potential for a price recovery.