Dogecoin (ticker: DOGE) and Shiba Inu (ticker: SHIB), two notable cryptocurrencies named after popular dog breeds, have both encountered approximately 5% decreases in their market values despite recent events that might generally be viewed as supportive of their prices.
For Dogecoin, the market witnessed an exceptional single-day outflow of $18.77 million from cryptocurrency exchanges — the largest such withdrawal in several months. Importantly, this outflow coincided with a period when the price was attempting to rally. This situation typically signals that larger institutional investors or holders are actively selling their positions, transferring tokens to presumably smaller or retail investors eager to enter the market. The key inference here is that the demand from retail buyers is insufficient to fully absorb the selling pressure exerted by these larger players, creating concern about the sustainability of any upward price moves.
Examining the technical landscape, Dogecoin's price retracement is notable. Since peaking at $0.27 in September, DOGE has now fallen by 48%, and trades beneath every major exponential moving average (EMA). The critical moving averages stand at: 20-day EMA at approximately $0.13968, 50-day EMA near $0.14315, the 100-day EMA around $0.15861, and the 200-day EMA close to $0.17829. The recent bounce in December, where price rose from $0.1215 to $0.158, has already seen substantial retracement with half of the gains relinquished. Furthermore, support levels between $0.12 and $0.13 have been tested on three separate occasions since December, and existing chart patterns suggest a fourth test could potentially break this support range, exposing lower price levels.
Shiba Inu has experienced a different but equally challenging scenario. The cryptocurrency witnessed a surge in its burn rate by 72.33% within a 24-hour window, resulting in approximately 3.04 million SHIB tokens being permanently removed from circulation. Since inception, over 410 trillion tokens have been burned from the original SHIB supply, showcasing ongoing efforts to reduce token availability and theoretically support price by constraining supply.
However, this notable reduction in supply from token burns has not translated into price appreciation. SHIB’s price continues to trend downward, having declined 53% from its August peak of $0.00001785. Similar to Dogecoin, Shiba Inu trades below all its key moving averages, with the 200-day EMA currently at about $0.00001046, a level well above prevailing prices. Adding to technical concerns, the Supertrend indicator rests at $0.00000754, representing a critical support threshold. Breaching this level could lead to further price deterioration.
From technical perspectives, several key price levels warrant attention. For Dogecoin, the immediate support to watch is the 20-day moving average at $0.13968, followed by the critical support zone of $0.12, which has been repeatedly tested. Should this support fail, further downside targets include the $0.10–$0.11 range, with possible extension down to $0.08–$0.09. Resistance for DOGE is present at the 50-day moving average near $0.14315 and then between $0.15 and $0.158.
Regarding Shiba Inu, immediate support correlates with yesterday’s low at approximately $0.00000794, with critical backing at the Supertrend level of $0.00000754. A breach of these supports could cause the price to drop to around $0.000007, potentially reaching the December low at $0.00000676, and even further towards $0.000005–$0.000006. Resistance lies between $0.0000085 and $0.000009.
In summary, both Dogecoin and Shiba Inu are confronting significant downward pressure amid contrasting but ultimately ineffective mechanisms intended to bolster price. Institutional selling has outweighed buyer enthusiasm for DOGE despite price attempts to rally, while SHIB’s aggressive token extinction strategy has failed to generate the necessary demand to offset broader weakness.