Recently, both Dogecoin (DOGE) and Shiba Inu (SHIB) have been experiencing a decline in their prices, reflecting a bearish sentiment towards these popular meme coins. This downward trend can be attributed to various factors, including developments in the wider cryptocurrency market.

Tracking Bitcoin’s Influence on Dogecoin and Shiba Inu

Dogecoin and Shiba Inu have been closely mirroring the movement of Bitcoin, leading to the current decrease in their prices. Data from market intelligence platform IntoTheBlock indicates a strong positive price correlation of 0.9 and 0.84 between Dogecoin and Shiba Inu, respectively, with Bitcoin.

When Bitcoin dipped below $56,000 on September 5, both Dogecoin and Shiba Inu witnessed a corresponding drop in their prices. This lack of bullish momentum in Bitcoin, alongside macroeconomic factors, has impacted these meme coins negatively.

The recent decline in trading volume has contributed to the decrease in Dogecoin and Shiba Inu prices, as investors and traders are showing less interest in these coins currently. Data from CoinMarketCap reveals a decline of over 3% in DOGE’s trading volume and a 12.86% drop in Shiba Inu’s trading volume during this period.

Historical data indicates that September tends to be a month of losses for Dogecoin and Shiba Inu, with 2021 being an exception where they experienced gains during this month.

Potential Further Declines for DOGE and SHIB

The prevailing bearish sentiment towards Bitcoin’s price suggests that Dogecoin and Shiba Inu could face additional price drops. Crypto analysts have predicted further declines in Bitcoin’s price, potentially impacting these meme coins even more.

Both Dogecoin and Shiba Inu are currently trading below crucial support levels and could face significant drops if Bitcoin falls below $50,000. Key price levels to monitor are $0.077 for DOGE and $0.000010 for SHIB, where large volumes of these coins were purchased.

Images of charts related to Dogecoin and Shiba Inu’s price movements can be found below: