What's next for Dogecoin and Shiba Inu after dropping over 80% from their all-time highs
- Meme coins Dogecoin and Shiba Inu prices have plummeted 80% from their all-time high in the ongoing bear market.
- 410.36 trillion Shiba Inu tokens have been burned so far, failing to fuel a recovery in SHIB price.
- Analysts believe trend exhaustion is low and Dogecoin is ready to make a comeback to the $0.13 level.
Dogecoin and Shiba Inu witnessed a massive price drop in the recent bloodbath that hit the cryptocurrency market. Meme coins wiped out their gains, plummeting from their all-time highs, while investors poured capital into social tokens.
Dogecoin and Shiba Inu prices nosedived 80%
The cryptocurrency market has been in decline for an extended period. Meme coins like Dogecoin, Shiba Inu, Floki Inu, Dogelon Mars and Baby Doge have shed over 80% of their value since their all-time highs.
While Shiba-Inu-themed cryptocurrencies wiped out their gains, social tokens in sports entertainment witnessed a rise in popularity. Multiple fan tokens, Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR), AC Milan fan token (ACM), and FC Porto (PORTO), have posted massive gains since May 18, 2022.
Investors have turned to entertainment in times of crypto bloodbath and market turmoil, rooting for their favorite football club.
Fan tokens witnessed three-digit gains over the past week
The Total Value Locked in Shiba Inu's DeFi platform Shiba Swap has consistently plummeted since July 2021. Total Value Locked represents the number of assets being staked on the DeFi platform. Therefore, a declining TVL on Shiba Swap indicates a reduction in supply secured by the platform.
Shiba Swap TVL
410.36 trillion Shiba Inu tokens burned, no recovery in sight
Data from Shiba Inu's burn portal Shibburn revealed that 410.36 trillion SHIB tokens had been destroyed. Typically, a shrinking circulating supply fuels recovery in the price.
However, despite a rapid decline in the circulating supply of the meme coin, there has been no recovery in Shiba Inu's price. The meme coin has witnessed a consistent price drop, despite the destruction of 5.4 billion SHIB tokens on Friday.
Dogecoin price could recover with declining trend exhaustion
Analysts evaluated the Dogecoin price drop and predicted a recovery in DOGE. Crypto analysts at the YouTube channel Trade Confident have identified trend exhaustion as a critical indicator of Dogecoin's rally. When trend exhaustion is low, Dogecoin price usually recovers and witnesses a breakout. Analysts noted that currently, the trend exhaustion level is low; therefore Dogecoin price could recover from its slump and target the $0.13 level.
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.
