The Dogecoin and Shiba Inu price have witnessed notable price crashes in the last 24 hours. This development looks to be based on a wave of profit-taking that has followed the recent crypto market rally.
Dogecoin And Shiba Inu Price Suffer Significant Crash
The Dogecoin and Shiba Inu price are down in the last 24 hours following their recent rally alongside the broader in which they recorded notable gains. Some crypto investors are believed to be taking profits, which has brought the price correction for these foremost meme coins. Notably, the Dogecoin and Shiba Inu price have a correlation with the Bitcoin price and look to be mirroring the flagship crypto.
The Bitcoin price has also experienced a pullback after coming close to its all-time high (ATH) on October 29. BTC rose to as high as $73,000, its highest point in four months. This brought about a wave of profit-taking, with companies like Reddit revealing that they have significantly reduced their crypto exposure.
Bhutan was also among those taking profit, depositing 1,000 BTC into Binance, indicating their intention to sell off these crypto holdings. This wave of profit-taking was to be expected, considering that 99.7% of these holders were in profit following the recent rally.
Similarly, the Dogecoin and Shiba Inu price rallies also put most of their holders in profit, leading to a wave of profit-taking and, ultimately, their price declines, considering the amount of selling pressure. For instance, on-chain data shows that a whale transferred 1.74 billion DOGE ($295.8 million) to the Robinhood exchange as it looked to secure profits.
Meanwhile, IntoTheBlock data shows that Shiba Inu’s large transactions show that this metric is currently bearish for the meme coin. This indicates that whales are likely selling as they also look to secure some profits from the recent market rally.
These Meme Coins Are Likely To Bounce Back
The Dogecoin and Shiba Inu price are likely to bounce back despite the recent price correction, as they are currently in bullish territory. Given their correlation with the Bitcoin price, they will likely move to the upside as the flagship crypto attempts to break its current ATH again.
Bitcoin is enjoying massive demand, which will likely overwhelm the sell side soon enough. This demand mainly comes from the Spot Bitcoin ETFs. Farside data shows these ETFs recorded $893.3 million in net inflows on October 30. They also breached the 1 million mark in the process and now hold over 1 million BTC.
This development is significant for the Dogecoin and Shiba Inu price, as these meme coins will likely also enjoy more demand as the demand for the flagship crypto increases. Some investors will look to invest in these meme coins since they always outperform BTC whenever the market is in an uptrend.
Featured image created with Dall.E, chart from Tradingview.com
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