Dogecoin Drops 14%, Shiba Inu Sinks 17%: What's Behind The Decline?

Dogecoin DOGE/USD and Shiba Inu SHIB/USD have seen sharp declines, with traders debating whether these drops signal a buying opportunity or a deeper trend reversal.

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Dogecoin DOGE/USD	$0.3779	$55.6 billion	-13.5%	-7.4%
Shiba Inu SHIB/USD	$0.00002484	$14.8 billion	-16.4%	-11%
Pepe PEPE/USD	$0.00002287	$9.6 billion	-17%	+16%

Trader Notes: Crypto trader DonAlt highlights Dogecoin’s sideways movement over the past month, describing it as one of the most “net-worth-destructive” charts in crypto history.

I don't think there has been a chart that has simply gone sideways for a month that has been more destructive to peoples networth than this in crypto history pic.twitter.com/6nFAI3w3UY

— DonAlt (@CryptoDonAlt) December 10, 2024

Another trader commented on the risks of consensus trades, noting that when everyone expects a breakout, but no new buyers emerge, prices stagnate. A Dec. 6 survey of his shows 40% of Crypto Twitter felt DOGE was an overcrowded trade, while 60% suggested “just buy.”

Still trader Tardigrade believes Dogecoin is consolidating at a similar position to previous cycles, signaling a potential rebound. Scofield advises that this could be the “last buying opportunity before take-off.”

$DOGE

Last buy opportunity before the take off pic.twitter.com/iGYCEMqTfu

— Scofield (@Crypto_Scofield) December 10, 2024

Statistics: IntoTheBlock data shows Shiba Inu's large transaction volume expanded by 175.3% while daily active addresses dropped 27.9%.

Transactions greater than $100,000 widened from 488 transactions to 848 transactions in single day. Despite price drops, 60% of SHIB holders are in profit.

Shibburn data shows 11.55 million SHIB coins were burned in the past 24 hours with 9.7 million SHIB in one transaction and 1.46 million in another.

Coinglass data shows DOGE derivatives trading volume surged 84.1%, while open interest dropped 27.5%. Open interest and liquidations hit peak levels on Dec. 9, signaling heightened market activity.

What's Next: The significant price declines in both coins come amid heightened market volatility and mixed sentiment.

For Dogecoin, some traders see consolidation as a precursor to a breakout, while for Shiba Inu, the burn rate and whale activity could indicate growing interest despite the pullback.

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