The Dogecoin and Shiba Inu price have witnessed notable price crashes in the past 24 hours. This development appears to be based on a wave of profit-taking that followed the recent rally in the crypto market.
Dogecoin and Shiba Inu Price Suffer Significant Crash
Dogecoin and Shiba Inu prices have fallen over the past 24 hours following their recent rally, joining the broader period of seeing notable gains. It is believed that some crypto investors are taking profits, which has led to a price correction for these top meme coins. In particular, the Dogecoin and Shiba Inu price have a correlation with the Bitcoin price and it looks like it mirrors the flagship crypto.
Bitcoin price has also seen a pullback after coming close to its all-time high (ATH) on October 29. BTC rose to $73,000, a four-month high. This caused a wave of profit taking, with companies like Reddit revealing that they have significantly reduced their exposure to cryptocurrencies.
Bhutan was also among those who made profits, Deposit 1,000 BTC in Binance, indicating that they plan to sell these crypto holdings. This wave of profit taking was expected, as 99.7% of these holders made profits after the recent rally.
Likewise, the price increases of Dogecoin and Shiba Inu cause most of their holders to make a profit, leading to a wave of profit-taking and, ultimately, their price declines given the amount of selling pressure. For example, data about the chain show that a whale transferred 1.74 billion DOGE ($295.8 million) to the Robinhood exchange as it wanted to safeguard profits.
In the meantime, IntoTheBlock data shows that Shiba Inu’s large trades show that this metric is currently bearish for the meme coin. This indicates that whales are likely to be sold as they also look to make some gains from the recent market rally.
These meme coins will likely bounce back
The Dogecoin and Shiba Inu price are likely to recover despite the recent price correction as they are currently in bullish territory. Given their correlation with the Bitcoin price, they are likely to move higher if the flagship crypto tries to break its current ATH again.
Bitcoin enjoys huge demandwhich will likely overwhelm the sales side soon enough. This question mainly comes from the Spot Bitcoin ETFs. Data on the other side shows that these ETFs recorded net inflows of $893.3 million as of October 30. They also crossed the 1 million mark and now own more than 1 million BTC.
This development is important for the Dogecoin and the Shiba Inu price, as these meme coins are also likely to see more demand as demand for the flagship crypto increases. Some investors will want to invest in these meme coins because they always outperform BTC when the market is in an uptrend.
Featured image created with Dall.E, chart from Tradingview.com