The recent crypto rally saw Dogecoin and Shiba Inu climb to new heights, but now they’re taking a tumble. This sudden drop is likely due to a wave of profit-taking by investors who cashed in on the recent gains.
Profit-Taking Hits Meme Coins
Dogecoin and Shiba Inu have been closely following Bitcoin’s lead, and their recent price movements mirror the flagship cryptocurrency. Bitcoin itself experienced a pullback after reaching a four-month high of $73,000. This prompted a lot of investors to sell their Bitcoin, including companies like Reddit and even the country of Bhutan.
With so many investors in the green, it was only a matter of time before profit-taking hit Dogecoin and Shiba Inu. Data shows that a large whale moved 1.74 billion DOGE to the Robinhood exchange, suggesting they were looking to secure profits. Similarly, large transactions involving Shiba Inu point to whales selling off their holdings.
A Bounce Back is Expected
Despite the recent price correction, Dogecoin and Shiba Inu are still in bullish territory. Their strong correlation with Bitcoin means they’re likely to rise again as Bitcoin attempts to break its all-time high.
The demand for Bitcoin is huge, especially with the recent launch of Spot Bitcoin ETFs. These ETFs have seen massive inflows, and they now hold over 1 million BTC. This strong demand for Bitcoin will likely spill over to other cryptocurrencies, including Dogecoin and Shiba Inu. Many investors are drawn to meme coins during bull markets, as they often outperform Bitcoin.
So, while the recent price drop might seem concerning, it’s likely just a temporary dip. With Bitcoin’s strong performance and the growing demand for meme coins, Dogecoin and Shiba Inu are expected to bounce back soon.
