The cryptocurrency market has been tense lately, and two of its most popular meme tokens, Dogecoin and Shiba Inu, have taken a major hit in the recent sell-off. Both coins have experienced significant price declines, driven by low buying activity from large investors, weaker on-chain performance, and worsening market sentiment.
Dogecoin’s drop has been fueled by major holders selling off large amounts of tokens, while Shiba Inu is struggling due to its inability to maintain liquidity and demand through its layer-2 network, Shibarium. Together, their sharp price drops reflect growing unease among retail traders about these two meme coins.
Dogecoin and Shiba Inu have both crashed significantly over the past week. Dogecoin fell by as much as 17%, while Shiba Inu dropped around 12%.
On-chain data reveals that Dogecoin’s recent decline was triggered by a large-scale sell-off from whale wallets holding between 10 and 100 million DOGE. These wallets unloaded roughly one billion coins in just seven days. This selling pressure pushed Dogecoin below a key support level near $0.18, which then led to further liquidations in derivatives markets.
As a result, Dogecoin’s market cap fell from nearly $30 billion to around $24.7 billion over the past week. Trading volume has also surged in the last 24 hours, with most of the activity coming from sellers.
Shiba Inu has faced its own challenges, with its price falling to around $0.0000089—its lowest level since January 2024. The token’s decline has been worsened by weak liquidity, low trading volume, and a noticeable slowdown in network activity.
Technical indicators confirm the ongoing downtrend. Shiba Inu is trading well below its 50-day, 100-day, and 200-day moving averages, and its Relative Strength Index is below 34, indicating weak momentum with no signs of a bullish turnaround.
Outlook: Can Dogecoin and Shiba Inu Recover?
Both Dogecoin and Shiba Inu rely heavily on community hype, which is currently lacking. The broader crypto market downturn over the past 24 hours hasn’t helped, with many cryptocurrencies weakening as the U.S. dollar strengthens. The overall crypto market fell by about 4% in the last day.
However, history shows that meme coins often rebound strongly when overall crypto sentiment improves. Dogecoin has a long-term support zone around $0.15-$0.17 that has historically served as a turning point, while Shiba Inu’s oversold RSI could attract bargain hunters if the market stabilizes.
For now, their recovery depends heavily on renewed retail interest and a strong market-wide rally—neither of which appears likely in the short term.
At the time of writing, Dogecoin is trading at $0.164 and appears to be attempting to reclaim the $0.17 support level. Shiba Inu is trading at $0.00000897.
Frequently Asked Questions
Of course Here is a list of FAQs about the falling prices of Dogecoin and Shiba Inu with clear and direct answers
BeginnerLevel Questions
1 Why are Dogecoin and Shiba Inu prices dropping
The prices are falling mainly because the entire cryptocurrency market is in a bear market or downturn When major coins like Bitcoin and Ethereum lose value smaller more speculative meme coins like DOGE and SHIB often fall even harder
2 What is a meme coin
A meme coin is a cryptocurrency that was created as a joke or based on an internet meme rather than for a serious technological purpose Dogecoin started as a joke about Bitcoin and Shiba Inu was created as a Dogecoin killer
3 Is my money gone forever
Not necessarily The value of your investment is only gone if you sell at a loss While there is a risk you could lose money cryptocurrency prices are known for being extremely volatile meaning they can go down but also have the potential to go back up
4 Should I buy more now that the price is low
This is a personal decision and a big risk While buying at a low price can be profitable if the price recovers its also possible the price could fall further Never invest more than you are willing to lose
5 What does FUD mean
FUD stands for Fear Uncertainty and Doubt It refers to negative news or rumors that scare investors into selling which can cause prices to fall
Intermediate Advanced Questions
6 Besides the overall market what specific factors are hurting DOGE and SHIB
Several factors are at play
Lack of Utility They have limited realworld use cases compared to other cryptocurrencies
High Inflation Both coins have a constant high supply of new coins being created or released which can dilute the value
Dependence on Hype Their value is heavily influenced by social media trends and celebrity endorsements When the hype dies down the price often falls
7 Could these coins actually bounce back
Yes a bounceback is possible but its not guaranteed It would likely require a combination of a strong recovery in the broader crypto market a new wave of