Memecoins are often where traders go for risk. This week is where the risk is reduced first. Dogecoin and Shiba Inu lost about 9% as bitcoin approached the $60,000 level, with the heaviest selling concentrated in the most speculative corners of the market.
News background
• Broader crypto sentiment deteriorated as bitcoin fell towards the psychologically important $60,000 level, triggering sell-offs in altcoins and memecoins.
• Derivatives traders adopted a defensive positioning, with DOGE futures open interest falling and SHIB open interest hovering around cycle lows.
• Despite the sell-off, both tokens continue to show mixed signals beneath the surface, with DOGE and SHIB seeing significant currency outflows that would normally be associated with accumulation.
Price Action Summary
• Dogecoin fell from $0.0891 to $0.0830, breaking the ascending channel that had guided the price action since February.
• Shiba Inu fell from $0.000004997 to $0.000004630, cutting support near $0.000004780 due to strong selling pressure.
• Both tokens saw their largest volume spikes during crashes rather than recoveries, a sign that sellers remained in control throughout the session.
Technical analysis
• DOGE falling below channel support is a more important event than the percentage drop itself. The ascending structure has held for four months, and losing it shifts attention to lower support levels near $0.067.
• SHIB chart looks even weaker. The token remains below all major moving averages and continues to post lower highs and lower lows despite aggressive token burning and ecosystem growth.
• In both cases, currency outflows failed to support the price. Typically, that means traders are paying more attention to macroeconomic conditions and momentum than long-term accumulation signals.
• Oversold readings are starting to appear on all momentum indicators, but neither DOGE nor SHIB have shown convincing evidence of a lasting reversal.
What traders should keep in mind
• For DOGE, the key level is $0.0819. A clear break below that level would strengthen the case for a move towards $0.067.
• For SHIB, support is near $0.000004575. Losing that area exposes the next downside zone around $0.000004500.
• Recovery attempts face immediate resistance at $0.0883 for DOGE and $0.000004780 for SHIB, both former support levels that have now become general supply.
• Until buyers start reclaiming broken support instead of simply bouncing off oversold conditions, the path of least resistance will remain lower.
