Dogecoin vs Shiba Inu: Will the Uptrend Continue or Just a Correction?

Bittime - The prices of meme coin tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) have recently experienced quite a significant increase. 

However, before you rush to join the trend, let's analyze it more deeply using on-chain derivatives data to see whether this increase can continue or is just a temporary correction.

Shiba Inu (SHIB) and Dogecon (DOGE) Open Interest Drops

Let's look at Shiba Inu first. Since last March, data shows a consistent decline in Open Interest (OI), indicating reduced interest from traders. This is in line with the decline in SHIB prices, which indicates bullish investors (believing the price will rise) are starting to hesitate.

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Although sometimes there is a short price increase followed by an increase in OI, the increase does not last long. This indicates that more market players are choosing to wait and see.

Also read: Burn Token Shiba Inu (SHIB) Soars Drastically, SHIB Supply Reduces!

Meanwhile, Dogecoin shows a slightly different pattern. Although DOGE also experienced a decrease in OI, this decrease occurred at the end of April. 

Interestingly, DOGE prices managed to rebound (rise again) more significantly at the end of March, namely by 86%. Compare this with the SHIB price increase of only 39% in the same period. 

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This difference in price movements explains the difference in OI and market sentiment towards the two assets.

In short, both memecoins are facing considerable selling pressure, indicating that bearish sentiment (belief that prices will fall) is dominant. 

However, it should be noted that SHIB's weakness looks more significant than DOGE over the longer term.

Also read: Whale Dogecoin (DOGE) Splashes 300 Million DOGE

DOGE and SHIB Recovery Potential

Even though both experienced price declines, the good news is that DOGE and SHIB holders are mostly still in a profitable position. 

This can be seen from the 365-day MVRV ratio of the two tokens which is still relatively healthy, namely 25.58% for DOGE and 28.84% for SHIB. The MVRV ratio shows the average profit that token holders have earned since they purchased.

The recovery of DOGE and SHIB prices will of course be greatly influenced by the movement of Bitcoin and the crypto market as a whole. Apart from that, specifically for SHIB, there is another good news, namely a drastic increase in burn rate.

According to Shibburn tracker data, SHIB's burn rate experienced a fantastic increase of 1,009% yesterday! This means there are approximately 29.11 million SHIB tokens burned. The burn mechanism aims to reduce the number of tokens in circulation, so that in theory it can increase the price.

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Despite the sharp increase in burn rate, SHIB price remains surprisingly up following the broader market trend. More interestingly, SHIB managed to cross the important psychological level of $0.000025. 

This of course sparked investor interest in SHIB, with many speculating positively about the potential for future price increases.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn Complete Guide How to Buy Crypto on Bittime. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also read:

Shibarium: Shiba Inu 2 Layer Blockchain Ecosystem and Token

SHIB Price Jumps 128% in 7 Days: What is the SHIB Price Prediction?

Doge Coin (DOGE) Price Prediction According to Crypto Academy

Whale Dogecoin (DOGE) Sends 1.87 Billion Coins, Impact on DOGE Price?

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.