- Dogecoin (DOGE) and Shiba Inu (SHIB) have plunged over 10%, triggering more than $90 million in liquidations as bearish momentum intensifies.
- Both memecoins face further declines, with DOGE eyeing $0.18 support and SHIB potentially dropping to $0.000010.
Dogecoin (DOGE) and Shiba Inu (SHIB) continue to suffer a massive downturn, extending their losses from the weekend. Both dog-themed memecoins plummeted over 10% on Sunday, leading to a brutal liquidation of leveraged positions. As of Monday, the sell-off deepened, wiping out more than $90 million from traders’ positions in the past 24 hours.
Massive Liquidations Shake Dogecoin and Shiba Inu
The steep decline in DOGE and SHIB prices has triggered a wave of panic among investors. According to data from CoinGlass, Dogecoin alone accounted for over $80.91 million in liquidations. The rapid decline could lead to further Fear, Uncertainty, and Doubt (FUD), increasing selling pressure and potentially causing more price drops.
Memecoins, known for their high volatility, often see extreme price swings. The recent downturn reinforces the speculative nature of these assets, as traders struggle to hold their positions amid bearish market conditions.
Dogecoin Faces Key Support Levels Amid Bearish Momentum
Dogecoin attempted to recover earlier in January but faced strong rejection at its 61.8% Fibonacci retracement level of $0.40. This resulted in a sharp 27.8% decline, causing DOGE to close below its critical 200-day Exponential Moving Average (EMA) at $0.31.
As of Monday, DOGE trades around $0.23, down 13.4% for the day. The Relative Strength Index (RSI) sits at 25, well below the oversold threshold of 30, signaling intense bearish pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicator continues to show a bearish crossover, suggesting further declines. If the downtrend persists, DOGE could fall to its next major support level at $0.18.
Shiba Inu’s Price in Freefall: Can Bears Push SHIB to $0.000010?
Shiba Inu has also seen a significant price breakdown. The token recently lost its ascending trend support, which had been intact since August 2023. Following this breach on January 24, SHIB dropped 22.22% over the next eight days, closing below its November 3 low of $0.000016.
At the time of writing, SHIB trades around $0.000013, down 11.61% for the day. Similar to DOGE, its RSI is deep in oversold territory at 23, reflecting strong bearish momentum. The MACD also signals further downside, indicating that SHIB could continue its descent toward its key support at $0.000010.
Final Thoughts: Will the Sell-Off Continue?
The sharp decline in Dogecoin and Shiba Inu highlights the ongoing struggles in the memecoin market. With both assets facing strong bearish indicators, the possibility of further drops remains high. Traders should remain cautious, as liquidations continue to mount, and critical support levels come under pressure. If sentiment fails to improve, DOGE and SHIB could see even deeper corrections in the coming days.
