Dogecoin Drowns as SHIB Whale Surfaces

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The DOGE price slipped 25% from last week’s high after a mys­te­ri­ous Shi­ba Inu bil­lion­aire moved his SHIB tokens, stok­ing crash fears. Doge­coin (DOGE) is unchanged at $0.269 this morn­ing and down around 4% this week. How­ev­er, Dogecoin’s cur­rent mar­ket cap of $35.5 bil­lion cements its place as the 9th most valu­able cryp­tocur­ren­cy behind Polka­dot (DOT).

Shi­ba Inu (SHIB) emerged as a bonafide threat to DOGE’s meme-coin crown in Octo­ber. The SHIB token surged almost 1,000% to a $51b mar­ket cap last month, briefly flip­ping DOGE in the process. As a result, Doge­coin fought back, claw­ing its way to a 7‑week high. 

SHIB eupho­ria peaked when it came to light that a lucky punter had turned an $8k invest­ment into a stag­ger­ing $5.7 bil­lion. Incred­i­bly, the wal­let hold­ing the tokens had been untouched for months. Nonethe­less, prof­it-tak­ing towards the end of last month forced SHIB down 35%. At the same, the Doge­coin price jumped as real­ized prof­its from SHIB rotat­ed into DOGE. 

Shiba Inu Whale 

How­ev­er, almost $3 bil­lion of SHIB left the wal­let yes­ter­day, caus­ing the price to drop a fur­ther 20%. Sub­se­quent­ly, the DOGE price has lost a poten­tial bull­ish cat­a­lyst. Log­i­cal­ly, if Shi­ba Inu col­laps­es under the weight of colos­sal liq­ui­da­tion, it will damp­en sen­ti­ment towards meme-coins. Fur­ther­more, it could leave investors with less cap­i­tal to fund future Doge­goin rallies. 

Dogecoin Price Analysis

The dai­ly chart shows the DOGE price is trend­ing side­ways in a broad chan­nel between $0.200 and $0.350. Above the mar­ket, the 200-Day Mov­ing Aver­age at $0.2860 offers resis­tance. Where­as the 100-DMA at $0.253 pro­vides support. 

In my opin­ion, side­ways is the path of least resis­tance until a cat­a­lyst arrives to force the price out of the range. The obvi­ous con­clu­sion is that the SHIB whale moved the tokens to sell them, which I con­sid­er bear­ish for the DOGE price. 

See also

How­ev­er, ‘obvi­ous’ very rarely works out in cryp­to trad­ing. And for that rea­son, I remain open-mind­ed as to where Doge­coin heads in the imme­di­ate future. Whilst I am unsure of the price, I am sure inter­est­ed to see which meme-coin claims top-dog status. 

DOGE Price Chart (daily)

DOGE price

For more mar­ket insights, fol­low Elliott on Twit­ter.



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