Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), two of the most prominent meme cryptocurrencies, have encountered significant price drops of approximately 11%, driven by a sharp downturn in Bitcoin (CRYPTO: BTC) and subsequent widespread selling pressure among speculative tokens.
Notable Capital Outflows from Dogecoin
Market data revealed a substantial net outflow totaling $29.67 million from Dogecoin on Thursday alone, marking one of the largest single-day capital withdrawals observed in recent months. This pronounced redirection of funds emphasizes continued seller dominance and a scarcity of buyer engagement in the market.
Technically, Dogecoin’s price breach below the important psychological support level of $0.10 was a critical development. This round number had functioned as a psychological floor on several occasions, but its failure signals a capitulatory phase among investors. Following the break below $0.10, the token is currently testing the lower threshold of its descending price channel, near $0.09.
Further technical indicators reinforce bearish sentiment. All examined exponential moving averages (EMAs) reside above the current price: the 20-day EMA at $0.11597, 50-day EMA at $0.12799, 100-day EMA at $0.14462, and 200-day EMA at $0.16696. Additionally, the Supertrend indicator sits at $0.12000, exhibiting a negative signal.
If Dogecoin cannot hold the $0.09 level, projections suggest a swift decline may ensue, potentially pushing the price down to the $0.07-$0.08 range. This represents an additional 15% to 20% decrease from current levels, indicating further downside risk for holders.
Critical Support Breach for Shiba Inu
Shiba Inu has also faced harsh selling pressure, breaking through a key support threshold at $0.0000086. The token is now confronting the challenge of maintaining the psychological support around $0.000006. Failure to uphold this price point could lead to accelerated selling activity, potentially forcing values down towards $0.000005 or even further.
The technical landscape for Shiba Inu is similarly bearish. All tracked EMAs lie above the present market price, with the 20-day EMA at $0.00000727, the 50-day EMA at $0.00000778, the 100-day EMA at $0.0000085, and the 200-day EMA at $0.00000989. Meanwhile, the Relative Strength Index (RSI) is at 25.70, reflecting nearing oversold conditions although it has not yet reached extreme levels.
Bitcoin's Significant Drop Triggers Broader Market Reaction
Bitcoin itself registered a precipitous 10% decline, falling below its 1,000-day EMA for the first time during 2023. This long-term moving average is widely regarded as a crucial technical support demarcating bullish and bearish market phases.
Simultaneously, investor funds have rotated away from cryptocurrencies into alternative assets such as artificial intelligence-related stocks and precious metals. This diversion of capital has depleted liquidity in digital token markets. Historically, the breach of this 1,000-day EMA tends to precede periods of extended price consolidation or heightened downside pressure, removing near-term technical support for riskier altcoins and meme tokens.
The current fallout in meme coins, as evidenced by sharp losses in Dogecoin and Shiba Inu, is reflective of Bitcoin's wider technical distress. Notably, Bitcoin has seen $1.5 billion in outflows alongside its price decline, exacerbating liquidity challenges for speculative digital assets and intensifying selling pressures.
These developments have led to a deteriorating technical outlook across major meme cryptocurrencies with the potential for further declines if critical support levels fail to hold.