of Dogecoin and Shiba Inu price The stock tumbled hard today, sparking bearish sentiment among investors. This price drop was caused by recent developments related to Melania Trump, the incoming first lady of the United States, launching a meme coin.
Why did Dogecoin and Shiba Inu prices plummet?
CoinMarketCap data It shows that Dogecoin and Shiba Inu prices have fallen by more than 7% in the past 24 hours. This price drop occurred after Melania Trump announced her meme coin, MELANIA. wave of selling As investors rushed to collect the US First Lady meme coin, they were looking for other coins.
Such coin launches are known to suck liquidity from other coins as investors release their holdings to make a quick profit from the new coin launch. A similar incident occurred over the weekend. When US President-elect Donald Trump began his policy, Dogecoin and Shiba Inu prices plummeted. Meme coin “TRUMP”.
The launch of “Trump” and “Melania” posed a big risk to Dogecoin and Shiba Inu prices. Because all these coins fall under the category of meme coins. within 48 hours, trump meme coin It overtook Shiba Inu as the second largest meme coin by market capitalization, trailing only Dogecoin.
On the other hand, due to the fall in the price of Bitcoin, the prices of Dogecoin and Shiba Inu also plummeted. The flagship cryptocurrency fell from $106,000 to $100,000 on Sunday, dragging other coins along with it. These meme coins should experience a price drop as they share strong positives. Price correlation with BTC.
This price drop is undoubtedly a major setback for DOGE in particular, as the leading meme coin had regained the important $0.40 level as support just before Melania Trump launched her meme coin. Analysts had previously suggested that a return to that level could push the price of the leading meme coin higher.
Pros of meme coins
Dogecoin and Shiba Inu prices could soon witness a bullish reversal as crypto whales are still accumulating these meme coins despite the recent crash. crypto analyst Ali Martinez It was revealed that these investors purchased 1.83 billion DOGE over the weekend. This is bullish for Dogecoin given that whale accumulation typically precedes price spikes.
Into the block data These Dogecoin whales are expecting a bullish reversal soon, which suggests they are indeed accumulating. DOGE BIG TRANSACTIONS Transaction value soared more than 41% during the period, with $23.35 billion traded. Meanwhile, Martinez also offered a bullish outlook on Dogecoin's price, noting that the memecoin appears to be undergoing a bullish retest of the breakout zone before moving further forward.
Shiba Inu price also set for bullish reversal as data from IntoTheBlock shows SHIB large trades surged 145%, with $216.18 million traded in the past 24 hours There is a possibility.
Featured image from Adobe Stock, chart from Tradingview.com
