There has been a significant plunge in the value of Dogecoin and Shiba Inu recently, bringing about a bearish feeling among cryptocurrency investors. The key driver behind this dramatic drop in price is the recent introduction of a meme coin by Melania Trump, the future First Lady of the United States.
Understanding the Sharp Drop in Dogecoin and Shiba Inu Prices
Data obtained from CoinMarketCap suggests a major decline in Dogecoin and Shiba Inu prices, with a decrease of over 7% recorded in the last 24 hours. This appears to be a direct effect of the launch of Melania Trump’s meme coin, tagged ‘MELANIA’. With this development, a significant number of investors were seen to sell off their existing cryptocurrency holdings to make way for possible quick gains from this novel launch.
In a similar vein, another striking dip in Dogecoin and Shiba Inu was observed over the weekend, coinciding with the launch of Donald Trump’s meme coin, coined ‘TRUMP’. The introduction of ‘TRUMP’ and ‘MELANIA’ presents a significant risk to the existing meme coins, such as Dogecoin and Shiba Inu. Within a span of 48 hours, the market capitalization of ‘TRUMP’ surpassed that of Shiba Inu, positioning it as the latter biggest meme coin and closely contesting the reign of Dogecoin.
The decline of Bitcoin’s value has also contributed to the sharp fall of Dogecoin and Shiba Inu prices. The leading cryptocurrency witnessed a drop from $106,000 to a low of $100,000 on Sunday, resulting in a consequential effect on other digital coins. According to industry analysis, both meme coins have a strong positive price correlation with Bitcoin, hence a decline in Bitcoin’s value invariably impacts their prices.
For Dogecoin, this development is a considerable downturn, as the coin recently regained the crucial $0.40 level. Prior to the launch of Melania Trump’s meme coin, cryptocurrency analysts predicted a surge in value for Dogecoin upon reclaiming the aforementioned level.
Meme Coins: The Silver Lining
Despite the recent sharp decline, there remains an optimistic projection for Dogecoin and Shiba Inu prices. According to Ali Martinez, a renowned crypto analyst, substantial amounts of these meme coins are being accumulated by large-scale investors or ‘whales’, which hints at a potential bullish market reversal in the near future. Martinez’s report suggests that a gargantuan sum of 1.83 billion Dogecoins were procured by these whales over the past weekend. Such a large-scale purchase can often signal an impending price surge.
Furthermore, IntoTheBlock data supports this prediction, showcasing a significant uptick in larger transactions involving Dogecoin. In fact, DOGE’s large transactions have seen a rise by over 41%, totalling $23.35 billion in trading volume. Martinez further suggested a bullish outlook for Dogecoin, with a potential price surge anticipated following a successful retest of the breakout zone.
Similarly, Shiba Inu could also experience a bullish turnaround. Data from IntoTheBlock shows a 145% increase in SHIB’s large transactions, with a total of $216.18 million traded within the last 24-hour period.
In conclusion, while the recent falls hit meme coins hard, positive indications from market whales and trends suggest potential for recovery and even growth in the near future.
FAQs
Why did Dogecoin and Shiba Inu prices crash?
The potential for quick returns from new cryptocurrency launches often influences investors to offload their existing holdings. The recent launch of Melania and Donald Trump’s meme coins resulted in a sharp fall in Dogecoin and Shiba Inu prices as investors scrambled to gain a stake in the new coins.
Are Dogecoin and Shiba Inu expected to recover soon?
While recent market conditions have seen a steep drop in prices, some analysts predict a potential rebound. This is due to significant purchases by ‘crypto whales’, large-scale investors who often impact market trends.
What other factors are influencing the price of meme coins?
Beyond new coin launches, the value of leading cryptocurrency Bitcoin has a notable impact on meme coin prices. With a strong positive price correlation existing between Bitcoin and meme coins, any significant fluctuation in Bitcoin’s price is likely to influence the value of meme coins like Dogecoin and Shiba Inu.
How can I keep track of future trends?
By utilizing leading applications such as Finances Zippy, users can gain insights into accurate price predictions and stay up-to-date with prevailing market trends. These platforms typically offer extensive crypto metrics to guide investment decisions.
