Dogecoin and Shiba Inu experienced a decline on Tuesday, continuing the trend of underperformance among meme coins. This movement coincided with rising trading volumes and tightening chart structures, overshadowing indications of accumulation by larger investors. While broader cryptocurrency markets exhibited selective stability, traders appeared to be shifting away from higher-beta assets like Dogecoin (DOGE) and Shiba Inu (SHIB).
Despite some improvements in the market structure for Shiba Inu—including the recent launch of regulated SHIB futures contracts by Coinbase—speculative tokens are still lagging behind. The futures contracts, linked to a 1,000-token index, aim to enhance compliance and institutional interest in the U.S. Nevertheless, the near-term price performance of these meme coins is predominantly influenced by technical market dynamics rather than regulatory advancements.
From a technical perspective, Dogecoin saw a drop of 3.3%, moving from $0.1302 to $0.1262. This marked a continuation of its pattern of lower highs, remaining constrained under a descending trendline. Trading volume surged more than 50% above the seven-day average, suggesting active repositioning rather than simply low-liquid drifts. The formation hints at a descending triangle around the $0.13 psychological support level, with previous support levels around $0.1265–$0.1270 now acting as resistance. Additional resistance is apparent near the $0.1360 mark, following a recent high-volume rejection.
Shiba Inu mirrored Dogecoin’s performance during U.S. trading hours, failing to reclaim its short-term resistance after breaking below key support levels. The increase in volume during price declines suggests broader sector distribution rather than isolated selling of a single token.
In terms of price movements, Dogecoin traded within a narrow range of $0.004, briefly stabilizing around $0.1258 before settling at $0.1262. Attempts to bounce back were short-lived, as selling pressure quickly returned above the $0.13 mark. Similarly, Shiba Inu showed comparable behavior, stabilizing after a decline but lacking significant upward momentum. This synchronized decline reinforces the notion that meme coins are currently reacting collectively, rather than being driven by individual token-specific factors.
Traders should be aware of the ongoing underperformance of DOGE and SHIB compared to broader market movements and more stable assets like Ethereum (ETH). Dogecoin needs to reclaim the $0.13 level with sustained trading volume to reverse its bearish trend, while Shiba Inu also requires a return to prior consolidation levels to regain positive momentum. Interestingly, while there appears to be whale accumulation in Dogecoin, its price action indicates weak short-term conviction. Until key resistance levels are breached, any potential rallies are likely to encounter selling pressure.
