The Dogecoin and Shiba Inu prices fell sharply today, sparking bearish sentiment among investors. This price drop comes in the wake of the recent event involving the future First Lady of the United States, Melania Trump, who launched her meme coin.
Why Dogecoin and Shiba Inu prices have plummeted
CoinMarketCap data shows that Dogecoin and Shiba Inu prices have fallen by over 7% in the last 24 hours. The price drop came after Melania Trump launched her “MELANIA” meme coin, which caused a wave wave of sales to other coins as investors rushed to stockpile the upcoming US First Lady meme coin.
Such coin launches are known to siphon liquidity from other coins as investors withdraw their holdings to make quick profits from the novel launch. A similar incident also occurred over the weekend. Dogecoin and Shiba Inu prices fell as novel US President Donald Trump introduced his currency “TRUMP” meme coin.
The launch of “TRUMP” and “MELANIA” also created a huge risk for Dogecoin and Shiba Inu prices as all these coins fall under the meme coin category. In less than 48 hours TRUMP meme coin then made Shiba Inu the second largest meme coin by market capitalization and heated on the heels of Dogecoin.
Meanwhile, Dogecoin and Shiba Inu prices also dropped due to the decline in Bitcoin price. The flagship cryptocurrency fell from $106,000 to just $100,000 on Sunday, dragging other coins down with it. These meme coins must have also felt the price drops because they have one robust advantage price correlation with BTC.
This price drop undoubtedly represents a huge setback, especially for DOGE, as the premier meme coin regained the key $0.40 level as support just before Melania Trump launched her meme coin. Analysts have previously suggested that a recovery to this level could lead to higher prices for the top meme coin.
Some advantages of meme coins
Despite the recent crash, Dogecoin and Shiba Inu prices may soon witness a bullish reversal as cryptocurrency whales continue to flock to these meme coins. Cryptocurrency analyst Ali Martinez revealed that these investors bought 1.83 billion DOGE over the weekend. This is an bullish result for Dogecoin, considering that whale accumulation usually precedes price increases.
IntoTheBlock data suggests that Dogecoin whales are indeed accumulating as they expect a bullish reversal soon. vast DOGE transactions increased by over 41%, with turnover during this period amounting to $23.35 billion. Meanwhile, Martinez also offered a bullish outlook on Dogecoin’s price, stating that the meme coin appears to be in a bullish retest of the breakout zone before continuing to rise.
The Shiba Inu price may also be showing a bullish reversal as IntoTheBlock data shows vast SHIB trades are up 145% with $216.18 million traded in the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com
