Dog-theme memecoins DOGE and SHIB crashes, over $90 million wiped out

Dogecoin and Shiba Inu prices continue to edge down on Monday after falling more than 10% on the previous day.
These dog theme-based memecoins liquidated over $90 million leveraged traders in 24 hours.
The technical outlook suggests a continuation of the downleg, as both memecoins’ momentum indicators favor downward move.

Manish Chhetri FXStreet

Dogecoin (DOGE) and Shiba Inu (SHIB) prices continue to edge down on Monday after falling more than 10% the previous day. The recent downturn has liquidated over $90 million from these dog theme-based memecoins in the last 24 hours. The technical outlook suggests the continuation of the downturn, as both memecoins momentum indicators show a bearish trend.

Dog memecoins traders face massive wipeout

The dog theme-based memecoins DOGE and SHIB declined more than 17% in the last two days. The coins continue their double-digit declines on Monday, triggering a wave of liquidations, resulting in over $90 million in total liquidations and more than $80.91 million specifically in DOGE, according to data from CoinGlass.

Huge Liquidations like this could spark Fear, Uncertainty and Doubt (FUD) among the dog theme-based memecoins investors and could cause a rise in selling pressure, leading to further decline in its prices.

DOGE Liquidation chart. Source: Coinglass

SHIB Liquidation chart. Source: Coinglass

Dogecoin Price Forecast: Bears take the lead

Dogecoin price faced rejection around its 61.8% Fibonacci retracement level on January 21 (drawn from the December 8 high of $0.48 to the December 20 low of $0.26) at $0.40 and declined 27.80% in the next 10 days, closing below its 200-day EMA at $0.31 on Saturday. At the time of writing on Monday, it continues to trade down by 13.4%, around $0.23.

If DOGE continues to crash, it could extend its decline to test its weekly support at $0.18.

The Relative Strength Index (RSI) on the daily chart reads 25, below its oversold levels of 30, indicating a strong bearish momentum. Moreover, the Moving Average Convergence Divergence (MACD) also continues to show a bearish crossover, suggesting the continuation of a bearish trend.

DOGE/USDT daily chart

Shiba Inu Price Forecast: Bears aim for $0.000010 mark

Shiba Inu price broke and closed below its ascending trend (drawn from connecting multiple lows since August 5) on January 24 and declined 22.22% in the next 8 days, closing below the November 3 low of $0.000016 on Sunday. At the time of writing on Monday, it continues to trade down by 11.61%, around $0.000013.

If SHIB continues its correction, it could extend its decline to test the August 5 low of $0.000010.

The RSI on the daily chart reads 23, below its oversold levels of 30, indicating a strong bearish momentum. The MACD also continues to show a bearish crossover, suggesting the continuation of a bearish trend.