Why Shiba Inu Coin and Dogecoin Price Falling Today?

Decline in Shiba Inu and Dogecoin Prices Attributed to Multiple Factors

The cryptocurrency market has experienced a notable decline in the values of prominent meme coins Shiba Inu (SHIB) and Dogecoin (DOGE). Within the past 24 hours, SHIB has depreciated by 3.72%, reaching a value of $0.000016, while DOGE has witnessed a 2.5% decrease, currently priced at $0.106. Additionally, significant fluctuations have been observed in the trading volumes of both coins. SHIB's volume has dwindled by 3.82% to $286.78 million, while DOGE has experienced a surge in trading volume by 16.41%, reaching $637.79 million.

Contributing Factors to Price Decline:

1. Increased Whale Activity in Shiba Inu:
Data suggests a recent surge in trading activity among Shiba Inu whales, raising concerns for smaller investors. Between October 6 and 7, the volume of SHIB transactions involving whales more than doubled, totaling 3.02 trillion SHIB with an approximate value of $52.8 million. This uptick in whale activity, coupled with the overall price decline, indicates that large holders may be driving the sell-offs. As these significant investors liquidate portions of their holdings, the selling pressure exerts a negative influence on market sentiment.

2. Bearish Technical Trends:
Technical indicators for both Shiba Inu and Dogecoin reflect bearish trends that may have contributed to the price declines. SHIB's daily chart exhibits a symmetrical triangle pattern, indicative of a consolidation phase. While such patterns can resolve in either direction, a breakout from this pattern could trigger substantial price movements. Currently, SHIB's price hovers near the triangle's lower end. If selling pressure intensifies, the coin could revisit support levels at around $0.000015 and $0.000013. For Dogecoin, Elliott Wave analysis suggests a potential retracement before the next upward trend. DOGE is trading below its 200-day moving average, reinforcing the bearish trend. The Wave Oscillator also indicates bearish momentum, suggesting that DOGE's price is unlikely to reverse anytime soon.

3. Broader Crypto Market Sentiment and Economic Factors:
Market sentiment plays a crucial role in cryptocurrency performance, and recent indicators point to a bearish outlook among investors. Broader economic factors and market fluctuations have impacted SHIB and DOGE. For instance, the recent movement of ETH tied to the PlusToken scam has fueled fears of a potential crypto sell-off, with 7,000 ETH worth $16.7 million already transferred to exchanges. The threat of a $1.3 billion liquidation adds further pressure to the crypto market. Additionally, approximately 52.86% of SHIB holders are currently in profit. As these investors weigh their options, a shift in sentiment could trigger profit-taking behaviors. However, by October's end, Dogecoin price could potentially break out of its bearish pattern, potentially reaching $0.15. Whale accumulation has been on the rise, with wallets holding between 1 million to 10 million DOGE now controlling 10.63 billion DOGE. This robust buying interest suggests confidence in a future upward price movement.

Disclaimer: The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any investment decisions.