The Dogecoin and Shiba Inu prices have crashed violently today, sparking a bearish sentiment amongst investors. This price decline has occurred attributable to a recent development involving the incoming US First Lady, Melania Trump, who launched her meme coin.
Why The Dogecoin And Shiba Inu Prices Crashed Violently
CoinMarketCap data shows that the Dogecoin and Shiba Inu prices are down over 7% within the last 24 hours. This price decline occurred following Melania Trump’s launch of her meme coin, ‘MELANIA,’ which sparked a wave of sell-off for other coins as investors rushed to build up the incoming US first lady’s meme coin.
Such coin launches are known to suck liquidity from other coins as investors offload their holdings with the intention to make quick profits from the brand new launch. An analogous occurrence also happened over the weekend. The Dogecoin and Shiba Inu prices crashed because the incoming US President Donald Trump launched his meme coin ‘TRUMP.’
The ‘TRUMP’ and ‘MELANIA’ launch has also posed an enormous risk to the Dogecoin and Shiba Inu prices as these coins all fall under the meme coin category. In lower than 48 hours, the TRUMP meme coin went on to flip Shiba Inu because the second-largest meme coin by market cap and was heavy on the heels of Dogecoin.
Meanwhile, the Dogecoin and Shiba Inu prices also crashed attributable to the Bitcoin price decline. The flagship crypto dropped from $106,000 to as little as $100,000 on Sunday, dragging other coins along. These meme coins were certain to also suffer price declines since they share a powerful positive price correlation with BTC.
This price decline undoubtedly presents an enormous setback for DOGE especially, because the foremost meme coin had reclaimed the crucial $0.40 level as support just before Melania Trump launched her meme coin. Analysts had before now suggested that a reclaim of that level could lead on to higher prices for the foremost meme coin.
Some Positives For The Meme Coins
Despite the recent crash, the Dogecoin and Shiba Inu prices could soon witness a bullish reversal as crypto whales are still accumulating these meme coins. Crypto analyst Ali Martinez revealed that these investors bought 1.83 billion DOGE over the weekend. That is bullish for Dogecoin, considering how whale accumulation often precedes a price surge.
IntoTheBlock data suggests that these Dogecoin whales are indeed accumulating as they anticipate a bullish reversal soon enough. DOGE’s large transactions have spiked by over 41%, with $23.35 billion traded during this era. Meanwhile, Martinez also provided a bullish outlook for the Dogecoin price, stating that the meme coin appears to be in a bullish retest of the breakout zone before advancing further.
The Shiba Inu price may be set for a bullish reversal as IntoTheBlock data shows that SHIB’s large transactions have spiked by 145%, with $216.18 million traded within the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com