What to Know
- DOGE fell 3.8% and SHIB dropped 2.6%, underperforming the broader crypto market.
- Both tokens failed key resistance levels, triggering selling as traders reduced exposure to memecoins.
- Shiba Inu still faces trust issues after its $3M Shibarium exploit, while token burns struggle to lift sentiment.
Dogecoin and Shiba Inu, the two biggest memecoins are under pressure this week. Both tokens have dropped harder than the rest of the crypto market, hit by weak sentiment, failed technical breakouts, and lingering trust issues around its ecosystem.
Dogecoin is down about 3.8% in the past 24 hours, while Shiba Inu slipped 2.6%, underperforming the broader market’s 2.1% drop. With Bitcoin dominance rising and investors pulling back from riskier bets, meme-driven assets are feeling the chill once again.
Market Turns Risk-Off
The crypto market is getting cautious against altcoins. The total market capitalization is now about $3.47 trillion, and the Crypto Fear & Greed Index is at 26 out of 100, which is firmly in the “Fear” range. That means traders are less likely to take risks, especially with tokens that depend a lot on social media and community excitement.
Bitcoin’s dominance climbed to about 59%, showing how traders are shifting to larger, more stable assets. Dogecoin’s 24-hour trading volume also fell 23% to $1.72 billion, a clear sign that enthusiasm is cooling. When the broader market becomes defensive, memecoins are often the first to take a hit.
Dogecoin Fails at Key Level
Dogecoin’s recent slide started when it failed to stay above $0.185, a level traders were watching closely. Once it slipped below that price, a key trendline that had supported the coin since early November also broke, triggering more selling pressure.
Now, all eyes are on $0.168 as the next major support. A drop below that level could drag DOGE toward $0.162, which lines up with its 200-day moving average, often seen as a long-term trend marker. On the flip side, if it bounces back above $0.176, a wave of short covering could push the price higher in the short term. In futures markets, Dogecoin’s funding rate turned negative. That means more traders are betting on the price going down. At the same time, open interest rose about 3%, suggesting that volatility could be building up for a bigger move.
This setup can cut both ways. If Dogecoin’s price recovers even slightly, short-sellers might be forced to buy back their positions quickly, pushing prices higher. But if the coin slips further, it could trigger a wave of liquidations making the fall even steeper. Either way, the next few days could be choppy.
Shiba Inu Faces Familiar Resistance
Shiba Inu is also showing weakness. The token couldn’t break through $0.0000107, which has been a tough resistance level since mid-October. After the failed breakout, traders took their profits, which caused a quick 2.5% drop. Momentum indicators are neutral to bearish, which means that SHIB may have a hard time getting new buyers unless it can convincingly close above that line.
SHIB could go down even more if it drops below $0.0000095. That level is in line with a key retracement zone that has acted as support in the past. Beyond technicals, Shiba Inu’s ecosystem still carries some baggage. In September, its Layer-2 network Shibarium was hit by a $3 million exploit, and though developers have since reassured users, the incident left a dent in investor confidence.In the last 24 hours, more than 621 million SHIB tokens were burned, a massive 145,000% spike in the burn rate. Still, prices barely moved, showing that enthusiasm is low. As long as fear dominates the market, such token-burn events may have little effect.
The Bigger Picture
Both Dogecoin and Shiba Inu are feeling the effects of a cautious market. With risk appetite shrinking, memecoins which depend more on hype than fundamentals are struggling to find buyers. Bitcoin and Ethereum have become safe again, while the meme side of crypto takes a breather.
For now, Dogecoin bulls will be watching $0.168 closely, while Shiba Inu holders hope the token stays above $0.0000097 to avoid a deeper slide. If Bitcoin steadies above $104,000 and broader sentiment improves, the meme-coin market could bounce back. Until then, traders might be wise to expect more chop than charm.
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