The cryptocurrency market is witnessing a short-term pullback in two of its most prominent meme coins—Dogecoin (DOGE) and Shiba Inu (SHIB)—with DOGE down nearly 7% and SHIB dipping by 3% over the past 24 hours. Despite the downward movement, underlying on-chain metrics, whale activity, and technical signals suggest the broader sentiment remains cautiously optimistic. Investors are now closely watching key indicators to determine whether this is a temporary correction or the start of a deeper consolidation.
Market Snapshot: DOGE and SHIB in Focus
As of the latest data, Dogecoin is trading at $0.3669**, with a market capitalization of **$54.2 billion. Over the past day, it has declined by 6.7%, though it maintains a positive 7-day trend of +4.4%. Shiba Inu, currently valued at $0.00002061**, holds a market cap of **$12.1 billion and has seen a 24-hour drop of 2.5%, with a slight weekly loss of 2.2%.
Interestingly, while both coins are retreating from recent highs, other meme tokens like Pepe (PEPE) are showing resilience, posting a 1.5% gain despite a weekly decline. This divergence suggests selective strength within the meme coin sector rather than a broad-based sell-off.
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Whale Activity: A Tale of Two Coins
One of the most telling signs of market direction lies in whale behavior—large holders whose transactions can signal confidence or caution.
Recent data from Santiment reveals that Dogecoin whales have been actively accumulating, purchasing 590 million DOGE in the past 24 hours alone. This surge in large-volume buying indicates strong institutional or high-net-worth interest, potentially setting the stage for a rebound.
Conversely, Shiba Inu has seen a different trend. According to IntoTheBlock, whale transactions dropped by 48.4% in a single day, while daily active addresses fell by 3.1%. This suggests reduced large-scale engagement, possibly due to profit-taking or strategic repositioning ahead of potential volatility.
However, a counterpoint emerges from Shibburn, which reported a staggering 612.8% increase in SHIB tokens burned over the last 24 hours—equating to 3.2 million SHIB removed from circulation. Token burns reduce supply, which can exert upward pressure on price over time, especially if demand remains stable or increases.
On-Chain and Derivatives Data: Mixed Signals
Beyond whale movements, derivatives and on-chain activity offer deeper insights into market psychology.
Dogecoin’s derivatives market shows growing interest:
- Open interest has risen 5.8% to $4.9 billion.
- Derivative trading volume jumped 23.8%, indicating heightened speculation.
- Notably, both long and short liquidations are at their lowest levels since December 2024, suggesting reduced leverage risk and a more stable trading environment.
These factors point to a maturing market structure for DOGE, where speculative excess is being tempered by strategic positioning.
Meanwhile, Shiba Inu’s Layer-2 network, Shibarium, continues to perform strongly, recording over 4.7 million daily transactions since December 2024. Sustained network usage reflects real-world adoption and ecosystem vitality—key fundamentals that often precede price appreciation.
Technical Outlook: Bullish Divergences Emerge
Despite current price declines, technical analysts are identifying potential reversal patterns.
Crypto trader StrongHedge noted that Shiba Inu and Floki are forming bullish divergences on higher timeframes. This means that while prices are falling, momentum indicators like the RSI or MACD are trending upward—a classic sign that selling pressure may be weakening.
He also emphasized that Dogecoin continues to demonstrate relative strength compared to other altcoins, reinforcing its status as a market leader within the meme coin category.
Another analyst, TraderSZ, has paused adding to his long DOGE positions, waiting for a “proper reclaim of mid-range” levels before re-entering. This cautious approach reflects prudent risk management during uncertain phases but doesn’t negate his overall bullish bias.
Market Context: Meme Coin Competition Heats Up
Dogecoin remains the second-most traded meme coin by 24-hour volume, with **$8.36 billion** in turnover—only behind the politically themed **TRUMP token**, which leads with $15.6 billion in volume.
The rise of new meme coins like TRUMP and MELANIA highlights increasing competition for attention and capital within the space. Yet, DOGE’s enduring dominance underscores its brand recognition, community strength, and historical significance in the crypto narrative.
Even as novelty tokens emerge, Dogecoin retains its position as the original "people’s coin," supported by consistent development activity and high-profile endorsements over the years.
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Frequently Asked Questions (FAQ)
Q: Why is Dogecoin falling despite positive whale activity?
A: Short-term price movements are influenced by multiple factors including profit-taking, macro sentiment, and leveraged positions. While whale buying signals long-term confidence, retail selling or broader market corrections can still drive temporary declines.
Q: Is Shiba Inu’s token burn enough to reverse its price drop?
A: Burns reduce supply and can support price growth over time, but they work best when combined with rising demand. Increased utility through Shibarium and ecosystem expansion will be critical to sustaining momentum.
Q: Are meme coins still a viable investment in 2025?
A: Meme coins carry higher risk due to volatility and speculative nature. However, established projects like DOGE and SHIB have evolved beyond jokes, building real infrastructure and communities that may offer long-term value.
Q: What does rising open interest mean for Dogecoin?
A: Increasing open interest suggests more traders are entering positions, often signaling growing market conviction. When paired with low liquidations, it reflects a healthier, less fragile market structure.
Q: Could Dogecoin or Shiba Inu rally soon?
A: Technical indicators like bullish divergences and strong on-chain activity suggest a potential reversal is possible. A break above key resistance levels could trigger renewed buying interest.
Q: How does Shibarium impact Shiba Inu’s value?
A: As a scalable Layer-2 solution, Shibarium enables faster and cheaper transactions, encouraging dApp development and user engagement. Strong network activity enhances token utility and investor confidence.
Final Thoughts: Correction or Consolidation?
The recent dip in Dogecoin and Shiba Inu prices should not be viewed in isolation. Instead, it reflects a broader market recalibration amid evolving narratives, increased competition, and shifting investor strategies.
Underlying fundamentals—particularly for Dogecoin—remain strong: rising open interest, sustained whale accumulation, and low leverage risks paint a picture of resilience. For Shiba Inu, burn activity and robust Layer-2 usage suggest long-term commitment from its community.
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While short-term volatility is inevitable, especially in the meme coin space, these projects continue to demonstrate staying power beyond mere speculation. As always, investors should conduct thorough research and consider risk management before making decisions.
Core Keywords: Dogecoin, Shiba Inu, meme coins, whale activity, token burn, open interest, Shibarium, price prediction