THE Price of Dogecoin and Shiba Inu have witnessed notable price drops over the past 24 hours. This development appears to be based on a wave of profit-taking that followed the recent crypto market rally.
Dogecoin and Shiba Inu price suffers major crash
Dogecoin and Shiba Inu prices have fallen over the past 24 hours after their recent rally alongside the broader one in which they saw notable gains. Some crypto investors are believed to be making profits, which has led to a correction in the prices of these top coins. Notably, the prices of Dogecoin and Shiba Inu have a correlation with the Bitcoin Price and appear to mirror flagship cryptography.
The price of Bitcoin also saw a decline after approaching its all-time high (ATH) on October 29. BTC hit $73,000, its highest level in four months. This led to a wave of profit-taking, with companies like Reddit developer that they have significantly reduced their exposure to crypto.
Bhutan was also among those that made profits, deposit 1,000 BTC in Binance, indicating their intention to sell these crypto holdings. This wave of profit taking was predictable, given that 99.7% of these holders were in profit following the recent rally.
Likewise, the price increases of Dogecoin and Shiba Inu also generated profits for most of their holders, leading to a wave of profit-taking and ultimately a decline in their prices, given the scale of the selling pressure. For example, chain data shows that a whale transferred 1.74 billion DOGE ($295.8 million) to the Robinhood exchange in a bid to secure 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 selling as they also look to take some profits from the recent market rally.
These Meme Coins Are Likely to Bounce
THE Price of Dogecoin and Shiba Inu are likely to rebound despite the recent price correction, as they are currently in bullish territory. Given their correlation with the price of Bitcoin, they will likely move higher as the flagship crypto attempts to break its current ATH once again.
Bitcoin profits massive demandwhich will likely overwhelm the seller side soon enough. This demand mainly comes from Spot Bitcoin ETFs. Hidden side data shows that these ETFs saw $893.3 million in net inflows on October 30. They also crossed the million mark in the process and now hold over a million BTC.
This development is significant for the Dogecoin and the price of the Shiba Inu, as these meme coins will likely also benefit from greater demand as demand for the flagship crypto increases. Some investors will look to invest in these meme coins because they always outperform BTC whenever the market is in an uptrend.
Featured image created with Dall.E, chart from Tradingview.com