- Bitcoin under pressure below $32,000
- Shiba Inu registers new 52-week low
- Dogecoin sell-off persists
Bitcoin plummeting below the $32,000 level spells doom for the broader cryptocurrency market. A 20% slide over the past one week leaves the flagship cryptocurrency down by more than 50% from its all-time highs recorded in November of last year.
With Bitcoin at risk of plunging below the $30,000 level, sentiments are increasingly turning sour in the cryptocurrency sector. Meme coins led by Dogecoin and Shiba Inu are some of the coins feeling the brunt of the recent steep pullback as investors continue to shun speculative assets.
Shiba Inu sell-off
Shiba Inu has already registered a new 2022 low after touching lows of $0.00001381. The meme coin is down by more than 80% from its all-time highs and down by more than 59% year to date. Every bounce back in recent days has acted as a selling opportunity from which short-sellers have entered the market and continued pushing the coin lower.
While SHIBUSD has bounced back from its 2022 lows to about $0.00001627, it remains under pressure and is likely to continue moving lower after the bounce back. The meme coin could struggle to rise above the $0.000020 level, which has emerged as a short-term resistance level after the recent sell-off.
Dogecoin under pressure
Dogecoin is another meme coin under pressure after plunging and registering a new all-time low of $0.0982. A drop below the $0.10 level leaves the coin at risk of posting significant losses as all major indicators affirm the bearish momentum.
The $0.109 was the initial support level above which DOGUSD was well supported for potential upside action. The meme coin has lost more than 40% in market value since the start of the year and is also down by more than 80% from its all-time highs.
Dogecoin and Shiba Inu have paid a hefty price on investors shunning cryptocurrencies amid the high inflation levels. The overall stock market has also turned bearish in the aftermath of the Federal Reserve hiking interest rates to try and curtail runaway inflation. The sell-off in the stock market has spilled into the crypto markets as investors scamper for safety in safe havens such as bonds and treasuries.
The lack of utility is another factor that seems to be accelerating Shiba Inu and Dogecoin slide. Unlike Ethereum, Cardano, and Solana, which continue to attract strong interest in the development of decentralized applications and powering decentralized finance, the meme coins lack clear use cases.
Dogecoin and Shiba Inu were on a roll at the height of the crypto boom. Any positive rhetoric by high-profile personalities such as Elon Musk sent the meme coins up the charts. The rhetoric has dried up as investors shun riskier assets amid growing concerns of economic recession.
While there is a case to be argued on Dogecoin and Shiba Inu being used for payments, it is not a unique use case. There are hundreds if not thousands of cryptocurrencies that could play the same role. Consequently, it is becoming increasingly difficult for Dogecoin and Shiba Inu to stand out in a highly overcrowded marketplace.
Dogecoin and Shiba Inu look set to remain under pressure as they lack a competitive advantage, let alone differentiation, to stand out in a highly overcrowded crypto landscape. With investors shunning riskier assets and cryptocurrencies with proven use cases, the meme coins will likely feel the biggest brunt.