Memecoins dogecoin, shiba inu dive 9% as bitcoin nears $60,000

Dogecoin and Shiba Inu led losses among major tokens as heavy volume and liquidations overwhelmed support levels, extending a broader risk-off move across crypto markets.

What to know:

• Dogecoin and Shiba Inu each fell about 9 percent as bitcoin slid toward $60,000, with selling heaviest in the most speculative parts of the crypto market.
• Both tokens broke key support levels and saw their largest trading volumes on breakdowns rather than rebounds, signaling that sellers remain firmly in control.
• Technical signals point to further downside for DOGE and SHIB unless buyers can reclaim former support levels that have turned into resistance.

Memecoins are usually where traders go looking for risk. This week they're where risk is getting cut first. Dogecoin and Shiba Inu both shed roughly 9% as bitcoin drifted toward the $60,000 level, with the sharpest selling concentrated in the most speculative corners of the market.

News Background

• Broader crypto sentiment deteriorated as bitcoin slipped toward the psychologically important $60,000 level, triggering liquidations across altcoins and memecoins.

• Derivatives traders moved into defensive positioning, with DOGE futures open interest falling and SHIB open interest hovering near cycle lows.

• Despite the selloff, both tokens continue to show conflicting signals underneath the surface, with DOGE and SHIB seeing sizeable exchange outflows that would normally be associated with accumulation.

Price Action Summary

• Dogecoin fell from $0.0891 to $0.0830, breaking the ascending channel that had guided price action since February.

• Shiba Inu dropped from $0.000004997 to $0.000004630, slicing through support near $0.000004780 on heavy selling pressure.

• Both tokens saw their biggest volume spikes during breakdowns rather than recoveries, a sign sellers remained in control throughout the session.

Technical Analysis

• DOGE's breakdown below channel support is the more important development than the percentage decline itself. The ascending structure had held for four months, and losing it shifts attention toward lower support levels near $0.067.

• SHIB's chart looks weaker still. The token remains below every major moving average and continues printing lower highs and lower lows despite aggressive token burns and ecosystem growth.

• In both cases, exchange outflows failed to support price. That usually means traders are paying more attention to macro conditions and momentum than longer-term accumulation signals.

• Oversold readings are beginning to appear across momentum indicators, but neither DOGE nor SHIB has shown convincing evidence of a durable reversal.

What traders should watch

• For DOGE, the key level is $0.0819. A clean break below it would strengthen the case for a move toward $0.067.

• For SHIB, support sits near $0.000004575. Losing that area exposes the next downside zone around $0.000004500.

• Recovery attempts face immediate resistance at $0.0883 for DOGE and $0.000004780 for SHIB, both former support levels that have now turned into overhead supply.

• Until buyers start reclaiming broken support rather than merely bouncing from oversold conditions, the path of least resistance remains lower.

More For You

Several headwinds converged over bitcoin recently as its largest buyer turned seller, ETF investors headed for the exits, and rate-hike fears rose.

What to know:

• Bitcoin fell below $60,000 for the first time since October 2024.
• It's down nearly 20% just this week following news that the crypto's largest buyer (Strategy) turned seller.
• ETF outflows, the prospect of interest rate hikes and speculative money focused on the AI trade have added to the pressure on...

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