Dogecoin and Shiba Inu trading volume explode, but correction remains imminent
- Shiba Inu trade volume hit $1.5 billion the day of its listing on the world's second-largest exchange.
- Dogecoin trade volume across exchanges increased in response to Elon Musk's tweet and the bullish outlook of traders.
- Dogecoin and Shiba Inu price are yet to recover from the drop recorded on September 7.
Dogecoin and Shiba Inu price plunged after on-chain activity for the Shiba-Inu-themed meme coins hit a high.
Dogecoin and Shiba Inu price set to drop further
Dogecoin price is yet to recover from the September 7 crash, and the altcoin has posted 23% losses over the past week. Elon Musk, an advisor to Dogecoin Foundation and a tech billionaire, triggered a spike in trade volume for the two Shiba-Inu-themed cryptocurrencies.
Historically, Musk's tweets have had an impact on trader sentiment toward DOGE and SHIB.
Cryptocurrency trader and analyst @itsALLrisky summarizes Musk's influence on Dogecoin price in his recent tweet.
Elon Musk:
— (@itsALLrisky) September 13, 2021
- Posts Doge memes all the time
- Did a #DOGE segment on SNL
- Set up #Dogecoin mining rigs with his kids
- Bought Dogecoin for his son
- Transacted with $DOGE for SpaceX Doge-1 mission
- Has a representative on the Dogecoin Foundation
- Adopted a Shiba pup
LEGEND! pic.twitter.com/9vS4raDhNb
The Tesla CEO recently tweeted a picture of "Floki," a Shiba Inu like "Kabosu," the original Dogecoin dog. This instantly garnered mainstream media attention; DOGE traders witnessed a rise in trade volume across spot exchanges.
In the case of SHIB, listing on Coinbase Pro led to a massive surge in trade volume. Over $1.5 billion worth of SHIB tokens were traded, marking a new all-time high in trade volume.
Shiba Inu price failed to recover to pre-crash levels despite a rally, and a bearish trend reversal has hit a pause on the upward climb.
Development upgrades recommended by Vitalik Buterin, also an advisor to the Dogecoin Foundation, are expected to impact the altcoin's price positively.
Until the Doge-Ethereum bridge is launched, the Dogecoin price may be subject to further consolidation.
FXStreet analysts have evaluated Shiba Inu and predicted a 10% correction as SHIB lacks momentum.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
