In January 2024, both Shiba Inu (SHIB) and Dogecoin (DOGE) experienced a parallel 17% decline in price, with positive market speculations and bearish headwinds influencing their performance.
However, concerns arise as Dogecoin miners’ recent selling trend, amounting to $22.6 million in the last three months, could potentially lead to a shift in dynamics, paving the way for Shiba Inu to outperform Dogecoin in February 2024.
In January 2024, both Dogecoin (DOGE) and Shiba Inu (SHIB) experienced a parallel decline, shedding 17% of their value. The similarity in their price performances has sparked speculation about the potential for Shiba Inu to overtake Dogecoin in February 2024.
Positive Catalysts and Bearish Headwinds
The proposed XPayments platform has been a significant catalyst for both Shiba Inu and Dogecoin communities, fostering positive market speculations in January. However, the broader crypto market has been under the influence of bearish headwinds, impacting both meme coins.
Dogecoin Miners’ Selling Trend Raises Concerns
Dogecoin faced a dip below the $0.08 mark in January, partly attributed to bearish headwinds affecting the entire crypto market. On-chain data suggests that Dogecoin miners’ selling pressure might intensify, potentially influencing a downward trend. This situation opens the door for Shiba Inu to showcase a stronger performance in the upcoming weeks.
In a strikingly similar performance in January 2024, both DOGE and SHIB posted a 17% decline. Despite their interconnected histories and market capitalizations of $11.4 billion and $5.3 billion, respectively, Dogecoin’s recent miners’ and mining pools’ disposition might create a divergence in their trajectories.
Miners Sell-off: A Bearish Signal for Dogecoin
Dogecoin miners have sold off over 290 million DOGE, equivalent to approximately $22.63 million, in the last three months. This trend, evident from IntoTheBlock’s miners’ reserves chart, is perceived as a bearish signal for the underlying asset. The continuous introduction of newly-mined DOGE coins to the market dilutes supply and exerts downward pressure on the price.
As the overall demand in the crypto market weakens, the miners’ selling trend could have a more pronounced impact on Dogecoin’s price in February 2024. This creates a potential scenario where Shiba Inu could outperform Dogecoin, marking a shift in the dynamics of the meme coin landscape.
DOGE Price Forecast and Critical Support Levels
Dogecoin’s price forecast suggests that losing the $0.007 support level could trigger larger losses. The $22.6 million selling trend by miners indicates a bearish outlook, with potential downward pressure in the coming weeks. However, a key support buy-wall around $0.07 could act as a defense line for Dogecoin.
If this support level is breached, it might trigger margin calls, leading to a potential retest of $0.06. On the contrary, a bullish scenario could unfold if DOGE breaks above the $0.10 zone. Nevertheless, resistance from addresses that acquired 14.1 billion DOGE at an average price of $0.095 might pose a significant hurdle for the bulls.
In conclusion, the interplay of market dynamics, miners’ activities, and critical support levels make February 2024 an intriguing period for the Shiba Inu vs. Dogecoin saga. Investors will be closely watching to see if Shiba Inu can capitalize on these factors and potentially outshine the pioneer meme coin, Dogecoin.
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