The prices of Dogecoin and Shiba Inu have plummeted dramatically today, creating a negative atmosphere among investors. This decline in value followed a recent occurrence involving the future US First Lady, Melania Trump, who introduced her meme cryptocurrency.
Reasons Behind The Dogecoin And Shiba Inu Price Plummet
Data from CoinMarketCap indicates that the prices of Dogecoin and Shiba Inu have fallen by more than 7% over the past 24 hours. This drop in prices came after the launch of Melania Trump’s meme coin, ‘MELANIA,’ which triggered a sell-off wave for other cryptocurrencies as investors hurried to invest in the new meme coin of the incoming US First Lady.
Such asset introductions are known to draw liquidity away from other cryptocurrencies as investors liquidate their assets to quickly profit from the fresh launch. A comparable incident occurred over the weekend. Dogecoin and Shiba Inu prices tumbled as the incoming US President Donald Trump rolled out his meme coin ‘TRUMP.’
The launches of ‘TRUMP’ and ‘MELANIA’ have also posed significant risks to Dogecoin and Shiba Inu values as these cryptocurrencies are classified under the meme coin category. In under 48 hours, the TRUMP meme coin succeeded in overtaking Shiba Inu as the second-largest meme cryptocurrency by market capitalization, closely trailing behind Dogecoin.
Additionally, the decline in Dogecoin and Shiba Inu prices was exacerbated by the drop in Bitcoin value. The leading cryptocurrency fell from $106,000 to as low as $100,000 on Sunday, dragging down other coins as well. These meme cryptocurrencies were likely to face price declines too since they maintain a strong positive price correlation with BTC.
This price decline signifies a substantial setback for DOGE particularly, as the leading meme coin had recently reclaimed the vital $0.40 mark as support just before Melania Trump unveiled her meme coin. Analysts previously suggested that reclaiming this threshold could result in increased prices for the primary meme coin.
Some Optimism For The Meme Coins
In spite of the recent downturn, the prices of Dogecoin and Shiba Inu might soon experience a bullish reversal as crypto whales continue to accumulate the meme coins. Crypto analyst Ali Martinez disclosed that these investors purchased 1.83 billion DOGE over the weekend. This bodes well for Dogecoin, considering that whale accumulation typically precedes a price increase.
IntoTheBlock data implies that these Dogecoin whales are indeed acquiring more as they foresee a bullish turnaround shortly. Large transactions of DOGE have surged by over 41%, with $23.35 billion exchanged during this timeframe. Additionally, Martinez has also shared an optimistic outlook for the Dogecoin price, indicating that the meme coin appears to be in a bullish retest of the breakout zone before advancing further.
The Shiba Inu price may also be on the verge of a bullish reversal, as IntoTheBlock data indicates that SHIB’s large transaction volume has risen by 145%, with $216.18 million traded in the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com
