Ramazan Eles 
The prices of Dogecoin (DOGE) and Shiba Inu (SHIB) experienced a significant decline today, coinciding with a slip in Bitcoin’s value. Let’s delve into the potential reasons behind the price drops.
In a surprising turn of events, amidst the broader downtrend in the cryptocurrency market, the prices of popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) witnessed a substantial plunge today, attracting considerable investor attention. This decline in meme coin prices comes amid various on-chain and market dynamics affecting the crypto landscape. Here’s a closer look at the factors that may have contributed to the dip in DOGE and SHIB prices today:
Altcoins Follow Bitcoin’s Lead:
Interestingly, Bitcoin experienced a notable price correction today, slipping back to the $66K mark. Currently, Bitcoin is trading at $66,639, causing a shift in sentiment across the broader crypto market.
The significant plunge in Bitcoin’s price primarily resulted from substantial liquidations totaling $131.92 million, according to Coinglass data. Following this trend, other coins, including meme coins like DOGE and SHIB, also witnessed substantial liquidations, contributing to their price dip.
Dogecoin recorded liquidations worth $14.76 million, with $11.69 million in long positions and $3.07 million in short positions. Meanwhile, Shiba Inu saw liquidations totaling $2.32 million, with $2.21 million in long positions and $108.63K in short positions. These significant liquidations align with the dip in DOGE and SHIB prices.
Derivatives Data Analysis:
Additionally, derivatives data analyzed by Coinglass indicated a notable decline in DOGE and SHIB open interest and OI-weighted funding rate, further contributing to the observed price dip.
DOGE’s open interest dropped by 11.68% to $1.67 billion, with its OI-weighted funding rate slipping to 0.0179%. SHIB experienced an 11.07% decrease in open interest, reaching $85.77 million, while its OI-weighted funding rate dropped to 0.0317%.
This reflects a bearish sentiment among crypto market traders and investors toward meme-based tokens, potentially driving prices down.
DOGE and SHIB Price Decline:
Currently, the price of Dogecoin has plummeted by 10.62% in the past 24 hours, trading at $0.1829. Meanwhile, Shiba Inu registered an 8.37% drop in the past 24 hours, resting at $0.00002635.
Despite the price drop, both DOGE and SHIB saw notable increases in 24-hour trading volume, indicating heightened selling pressure in line with liquidations. However, the RSI for both tokens suggests a neutral market sentiment, neither overbought nor oversold.
These developments have sparked speculation about potential shifts in price action, as these tokens may experience momentum changes in the near future. While technical indicators for Shiba Inu suggest a selling sentiment, contributing to SHIB’s decline, Dogecoin’s technicals indicate a buying sentiment, fueling speculation about a buy-the-dip market sentiment.
Moreover, a Dogecoin whale accumulated 134.82 million DOGE, followed by a SHIB whale accumulating 461.63 billion coins. This has piqued investor curiosity about whales’ confidence in the asset, potentially signaling rising price action ahead.
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