Dogecoin and Shiba Inu prices continued to decline slightly on Tuesday after dropping more than 10% the previous day. These dog-themed meme coins liquidated leveraged traders totaling $108 million in 24 hours. The technical outlook suggests a continuation of the downturn, as both memcoins momentum indicators are showing a bearish trend.
Dogecoin (DOGE) and Shiba Inu (SHIB) prices continued to decline slightly on Tuesday after dropping more than 10% on Monday. More than $108 million has been liquidated from these dog-themed meme coins in the past 24 hours due to the recent economic downturn earlier this week. The technical outlook suggests a continuation of the downturn, as both memcoins momentum indicators are showing a bearish trend.
Dog Meme Coin Trader Faces Massive Wipeout
The overall cryptocurrency market saw a pullback on Monday earlier this week after surging since early November. This pullback could be a healthy correction after the altcoin market posted a weekly close above $1.6 trillion for the first time since 2021.
According to data from Coinglass, dog-themed meme coins DOGE and SHIB also fell by double digits on Monday, triggering a wave of liquidations, resulting in a total liquidation total of more than $108 million, specifically for DOGE. That amounted to more than $96 million.
Such a large-scale liquidation could cause fear, anxiety, and doubt (FUD) among dog-themed meme coin investors, causing increased selling pressure and leading to further price declines.
DOGE liquidation chart. Source: Coin Glass
SHIB liquidation chart. Source: Coin Glass
Dogecoin Price Prediction: Fall towards $0.340 support level
Dogecoin price hit a year-to-date high of $0.483 on Sunday, after rising more than 200% since early November. Such a large rally leads to a rebound. DOGE's price faced a pullback on Monday, dropping more than 11%. As of this writing on Tuesday, it continues to fall, trading around $0.400.
The Relative Strength Index (RSI) flashes warning signs. The higher high formed on Sunday does not reflect the RSI chart for the same period and indicates the formation of a bearish divergence, which often leads to a short-term correction.
The Moving Average Convergence Divergence (MACD) indicator on the daily chart also supports the price decline. The MACD line showed a bearish crossover on November 26th, indicating a sell signal.
If DOGE continues its decline, it could extend its decline to retest its key support level at $0.340.
DOGE/USDT daily chart
Shiba Inu price prediction: close below weekly support
Shiba Inu price rose more than 4.3% last week, but fell 15.35% on Monday, ending below weekly support at $0.000028. As of this writing on Tuesday, it continues to fall, trading around $0.000026.
Similar to DOGE, SHIB is also showing the formation of a bearish divergence on the RSI indicator, indicating an upcoming decline. Additionally, the MACD line showed a bearish crossover on Monday, lending further credence to the bearish outlook.
If the weekly level of $0.000028 holds as resistance, the decline could extend to retest the 50% price retracement level (from early August low $0.000010 to December high $0.000033) $0.000022 There is sex.
SHIB/USDT daily chart
