Risk appetite in the cryptocurrency market took a major hit this week. As Bitcoin hovered near the critical $60,000 threshold, selling pressure quickly spilled over to altcoins—and meme coins, known for their high volatility, bore the brunt. Dogecoin and Shiba Inu both lost around 9 percent, with the steepest declines seen in the market’s more speculative niches.
Defensive positioning dominates in derivatives
The broad market downturn drove a cautious tone in derivatives trading as well. Open interest in Dogecoin futures declined, while for Shiba Inu it hovered near cycle lows. This shift pointed to investors scaling back risk exposure in the short term, favoring safety over leverage.
Open interest refers to the total number of active futures and options contracts that have yet to be settled. A decline in this indicator can signal capital outflows from the market or investors trimming their positions.
Mini glossary: In derivatives markets, open interest is the total number of contracts that remain unsettled. It’s typically tracked to gauge market sentiment and leverage risk; falling numbers suggest position closures or declining interest.
At the same time, both tokens saw notable outflows from exchanges. While such moves can sometimes hint at accumulation, in this environment they failed to support prices. The market’s attention clearly favored the macro outlook and ongoing weak momentum over signals of long-term accumulation.
Key support levels come into focus on the technical front
Dogecoin dropped from $0.0891 to $0.0830, breaking below the ascending channel that had supported prices since February. Analyst commentary emphasized that this structural break mattered more than the percentage drop itself. With a four-month trend now disrupted, attention has shifted toward lower support zones around $0.067.
The critical level for Dogecoin stands at $0.0819. If this threshold is breached, the likelihood of a further pullback toward $0.067 may increase.
Shiba Inu, meanwhile, slid from $0.000004997 to $0.000004630. Strong selling sent its price decisively below the key $0.000004780 support. Technical analysis indicates a weaker profile compared to Dogecoin, as Shiba Inu hovers beneath all major moving averages—and continues to form lower highs and lows.
The first support for Shiba Inu now stands at $0.000004575. If lost, the next key area is $0.000004500. On potential rebound attempts, resistance sits at $0.0883 for Dogecoin and $0.000004780 for Shiba Inu.
| Asset | Pre-drop level | Latest level | Key support | Nearby resistance |
|---|---|---|---|---|
| Dogecoin | $0.0891 | $0.0830 | $0.0819 | $0.0883 |
| Shiba Inu | $0.000004997 | $0.000004630 | $0.000004575 | $0.000004780 |
Volume and momentum data reinforce selling pressure
For both tokens, the most significant spikes in trading volume came not during recovery attempts, but during breakdowns of support. This suggests that sellers—not buyers—remained in control throughout the session. Signs of oversold conditions have started to emerge in some momentum indicators, but there have yet to be convincing signals of a sustained reversal in either Dogecoin or Shiba Inu.
For now, bounce attempts remain limited to quick oversold reactions rather than reclaiming lost supports, signaling continued downward pressure in the short term.
Analysis stresses that unless buyers can reclaim broken support zones, the path of least resistance remains to the downside. As a result, traders are closely watching technical levels and Bitcoin’s performance around the $60,000 mark to guide their next moves.
