In a surprising twist to cryptocurrency investors, the meme coin sector, primarily led by popular tokens Dogecoin and Shiba Inu, saw a decline in prices by more than 3% amidst a broader market downturn. This dip has sparked various speculations in the crypto community about the potential reasons behind this unexpected movement.
Dogecoin, the pioneer of meme coins, experienced a notable decline, with its price dropping 3.23% to $0.1223. With this price slip, the trading volume for Dogecoin also fell sharply by 30%, amounting to $489.51 million. Additionally, Dogecoin’s Open Interest, a measure of market interest, fell by 2.41% to $603.19 million, signaling a retreating sentiment among investors.
Similarly, Shiba Inu, another major player in the meme coin arena, also saw its price trade down at $0.00001717, representing a 3.13% fall. Shiba Inu’s trading volume mirrored that of Dogecoin, declining by 37% to $193.65 million. Besides, the Open Interest for Shiba Inu plummeted by 8.25% to $32.73 million, further highlighting the reduced enthusiasm in the market.
Speculations have pointed towards several factors that may have influenced this downturn. Notably, hawkish comments from U.S. Federal Reserve officials regarding plans for interest rates have significantly impacted market sentiment. Such policy expectations can cast a wide net of uncertainty across various investment assets, including cryptocurrencies.
Additionally, a specific development that affected Shiba Inu was Binance’s announcement about the delisting of TUSD pairs for the coin. This decision has potentially caused the SHIB price to react negatively, considering the impact on trading dynamics.
Despite the price dip, not all indicators are bleak for Shiba Inu. The SHIB burn rate, which signifies the community’s effort to reduce the coin’s supply, remained in the green. This indicates that community support towards the token persists, despite the downturn.
Both Dogecoin and Shiba Inu had previously enjoyed a surge of positive momentum on June 26, which makes the recent pullback even more noticeable. Market participants remain on the lookout for signs of recovery or further decline, as meme coins still hold a significant sway in the wider cryptocurrency sphere. Investors remain watchful, as the cryptocurrency market is known for its volatility and rapid shifts in investor sentiment.
