Meme cryptocurrencies Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced a significant drop in value as the week began, mainly due to broader market trends. SHIB saw an intraday low of $0.000012, while DOGE plunged to $0.2, raising concerns among investors. Several factors contribute to this slump, with investor uncertainty and massive liquidations being the key drivers of the recent price decline.
Trade War Speculations Trigger Market Volatility
The cryptocurrency market has been hit hard following U.S. President Donald Trump’s announcement of new import tariffs. Trump’s decision to increase tariffs on Mexico, Canada, and China has raised concerns about a potential trade war, affecting global markets. Although Trump has been viewed as pro-crypto, his new tariff measures have created uncertainty, leading to a market-wide downturn. Bitcoin dipped to $91K, with altcoins, including DOGE and SHIB, following the bearish trend.
Massive Liquidations Adding Pressure on Meme Coins
In addition to global market uncertainty, massive liquidations are further driving the price declines of DOGE and SHIB. According to Coinglass, Dogecoin experienced $87.12 million in liquidations within 24 hours, while Shiba Inu saw nearly $7.5 million in intraday liquidations. This heavy selling pressure has compounded the slump, with traders unwinding their positions amid the ongoing market turbulence.
Declining Futures Open Interest Signals Waning Market Activity
The latest data from Coinglass indicates a sharp drop in futures open interest (OI) for both DOGE and SHIB. DOGE’s OI decreased by 33%, falling to $2.44 billion, while SHIB’s OI plummeted by 46%, reaching $155.01 million. This decline suggests diminishing market interest in these meme coins, with fewer investors willing to take on new positions during this period of uncertainty.
As of now, SHIB is down 22%, trading at $0.00001368, with an intraday low of $0.0000123. DOGE has also fallen 21%, reaching $0.2394, with its low for the day at $0.2117. Both tokens’ poor performance reflects a cautious market outlook as investors await clearer signals amid the ongoing market volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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