Impact of Market Fluctuations on Meme Coins Like Dogecoin and Shiba Inu

Impact of Market Fluctuations on Meme Coins Like Dogecoin and Shiba Inu

The recent market volatility has had a significant impact on meme coins, including Dogecoin (DOGE) and Shiba Inu (SHIB).

Shiba Inu's Performance

Shiba Inu has experienced a 8.65% price decline over the past seven days, reaching a low of 0.00002258. This bearish trend is partly due to the overall market sentiment.

Dogecoin's Performance

Dogecoin has also faced selling pressure, declining by over 11% weekly to a low of $0.142. Despite these losses, on-chain data suggests the possibility of a significant rally.

Dogecoin's Potential Rise

Dogecoin's daily chart indicates an oversold trend. The Relative Strength Index (RSI), which was at 34 on May 1st, has risen to 45, suggesting a potential reversal.

While Dogecoin remains above its 200-day moving average, it continues to trade below its 50-day MA. Its price volatility should be considered due to its meme coin status.

However, Open Interest (OI) has increased by 0.87%, reaching $645.6 million. This increase could support a price increase.

The $0.16 resistance level is crucial for Dogecoin. If breached, it could potentially rise to $0.20. Additionally, the influence of whales and speculation could trigger a bullish movement.

Shiba Inu's Current State

Shiba Inu has experienced significant growth this year, with a 116% Year-To-Date (YTD) increase. However, the recent price decline has resulted in a bearish RSI of 42.

The Moving Average Convergence Divergence (MACD) suggests a potential trend change for Shiba Inu. Factors such as an increasing burn rate could contribute to this development.