The once-booming memecoin market has hit a rough patch, with leading players like Dogecoin (DOGE) and Shiba Inu (SHIB) experiencing significant price drops over the past week. This article delves into the current state of memecoins and explores potential recovery signs.
Investor Interest Wanes, Prices Tumble
CoinMarketCap data paints a gloomy picture for memecoins. Both DOGE and SHIB saw their prices plummet by over 5% in the last seven days. As of writing, DOGE sits at a price of $0.126, while SHIB struggles at $0.0000163. This decline coincides with a drop in investor interest. While IntoTheBlock data reveals 75% of DOGE holders remain profitable, only 48% of SHIB investors enjoy the same luxury.
Social Media Silence: A Telling Sign
Memecoins are known for their vibrant online communities. However, social dominance metrics highlight a concerning trend. Bitcoin (BTC) boasts a social dominance of 17.9%, dwarfing DOGE’s 1.49% and SHIB’s meager 0.24%. This lack of online chatter suggests waning investor enthusiasm for memecoins.
Recovery on the Horizon?
AMBCrypto analyzed on-chain data to gauge potential recovery for these memecoins. While DOGE’s weighted sentiment remains negative, indicating bearish dominance, SHIB’s metric surprisingly shows a positive shift. This suggests SHIB investors might be anticipating a rebound.
Furthermore, declining open interest for both memecoins often signals a potential trend reversal. Additionally, the dropping MVRV ratio for DOGE and SHIB hints at a possible market bottom, historically a precursor to price increases.
Fear Gauge Offers Little Direction
However, CFGI.io’s fear and greed index for both memecoins remains neutral. This lack of definitive sentiment suggests the market could go either way.
Also Read: Dogecoin (DOGE) Dips Out of the Dog House As Bullish Outlook Emerges
Potential Price Targets
If a bullish trend emerges, our analysis indicates DOGE might first reach $0.137 before potentially climbing to $0.14. Similarly, a bullish SHIB takeover could see it retesting $0.0000176. Conversely, a continued downtrend might push SHIB down to $0.0000155.
Conclusion
The memecoin market faces a period of uncertainty. While on-chain data hints at a possible recovery, investor sentiment remains a key factor.
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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