The Dogecoin and Shiba Inu prices fell sharply today, triggering a pessimistic mood among investors. This price drop is due to a recent development where the new US First Lady Melania Trump launched her meme coin.
Why Dogecoin and Shiba Inu prices plummeted
CoinMarketCap data shows that Dogecoin and Shiba Inu prices have fallen by over 7% in the last 24 hours. This price drop came after Melania Trump launched her meme coin “MELANIA,” which sparked a rally Sell-off wave for other coins as investors rushed to accumulate the incoming US First Lady meme coin.
Such coin launches are known to drain liquidity from other coins as investors dump their holdings to make quick profits from the new launch. A similar incident also occurred over the weekend. Dogecoin and Shiba Inu prices crashed as new US President Donald Trump launched his currency Meme coin “TRUMP.”
The launch of “TRUMP” and “MELANIA” also posed a big risk to the prices of Dogecoin and Shiba Inu as these coins all fall into the category of meme coins. In less than 48 hours it is TRUMP meme coin Subsequently, Shiba Inu became the second largest meme coin by market cap, following closely on the heels of Dogecoin.
Meanwhile, due to the Bitcoin price decline, the prices of Dogecoin and Shiba Inu also crashed. The flagship cryptocurrency fell from $106,000 to as low as $100,000 on Sunday, dragging other coins with it. These meme coins were also bound to suffer price declines as they have strong positive potential Price correlation with BTC.
This price drop undoubtedly represents a major setback for DOGE in particular, as the leading meme coin had reclaimed the crucial $0.40 level as support shortly before Melania Trump launched the meme coin. Analysts had previously suggested that a return to this level could lead to higher prices for the leading meme coin.
Some positive aspects of meme coins
Despite the recent crash, Dogecoin and Shiba Inu prices could soon see a bullish reversal as crypto whales are still accumulating these meme coins. Crypto analyst Ali Martínez announced that these investors purchased 1.83 billion DOGE over the weekend. This is bullish for Dogecoin considering that whale accumulation usually precedes a price increase.
IntoTheBlock data suggests that these Dogecoin whales are actually accumulating as they expect a bullish reversal soon enough. The major transactions of DOGE are up over 41% with $23.35 billion traded during the period. Meanwhile, Martinez also provided a bullish outlook for Dogecoin price, stating that the meme coin appears to be in a bullish retest of the breakout zone before continuing higher.
Shiba Inu price could also be set for a bullish reversal as data from IntoTheBlock shows SHIB’s large transactions increased by 145%, with $216.18 million traded in the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com