Dogecoin and Shiba Inu Slip as Derivatives Signal Decline

On Tuesday, Dogecoin (DOGE) and Shiba Inu (SHIB) continued their downward trajectory and fell below the levels of $0.195 and $0.00000099 respectively. The leading meme cryptocurrencies faced mounting bearish pressure as market sentiment deteriorated across the board.

Both tokens experienced significant weakness in recent sessions. Derivatives data revealed troubling signs for bullish investors. Open interest declined sharply while short positions accumulated. These metrics suggest traders expect additional downside movement in the coming days.

Derivatives Metrics Point to Continued Weakness

Futures open interest for Dogecoin dropped to $341.50 million on Saturday, according to Coinglass data. This represents the lowest level recorded since early April. The decline signals reduced investor participation and weakening confidence in the token’s near-term prospects.

DOGE open interest chart. Source: Coinglass

Shiba Inu faced similar challenges. Open interest fell to $173,460 on the same day. The figure marked the lowest reading since early March. Declining open interest typically indicates traders are closing positions and stepping away from the market.

SHIB open interest chart. Source: Coinglass

The long-to-short ratio provided additional evidence of bearish sentiment. CoinGlass data showed Dogecoin’s ratio at 0.85 on Wednesday. Shiba Inu’s ratio stood at 0.87. Both readings indicate short positions outnumber long positions. Traders are positioning for price declines rather than rallies.

This bearish positioning reflects broader uncertainty in the cryptocurrency market. Meme coins often experience amplified volatility during market downturns. The current derivative structure suggests limited near-term catalysts for recovery.

Dogecoin Tests Critical Support Levels

Dogecoin found temporary support at $0.181 on Friday. The weekly support level held initially. The token recovered approximately 9% over the following three days. However, momentum faded quickly.

At the time of writing, DOGE traded around $0.1944. The price remained under pressure despite the weekend bounce. Technical indicators reinforced the negative outlook. The Relative Strength Index (RSI) on the daily chart read 40. This sits below the neutral 50 level. The reading indicates bearish momentum controls price action.

The Moving Average Convergence Divergence (MACD) indicator flashed warning signs last week. A bearish crossover occurred and remained in effect through Tuesday. This technical signal often precedes extended downward moves.

DOGE/USDT daily chart. Source: TradingView

If the correction continues, Dogecoin could revisit the $0.181 support level. A break below this threshold would expose lower support zones. Bulls need to reclaim momentum quickly to prevent further losses.

Recovery scenarios exist but face significant resistance. A sustained bounce could target the 200-day Exponential Moving Average (EMA) at $0.220. Bulls would need to overcome substantial selling pressure to reach this level.

Shiba Inu Struggles After Sharp Friday Drop

Shiba Inu experienced a pronounced decline on Friday. The token attempted recovery over the weekend, but gains proved limited. At the time of writing, SHIB traded at around $0.000009975. Selling pressure persisted despite the brief respite.

Technical indicators mirrored Dogecoin’s bearish setup. The RSI remained below neutral territory. The MACD continued signaling downward pressure. These confluent signals suggest additional downside risk remains elevated.

SHIB/USDT daily chart. Source: TradingView

If the correction deepens, SHIB could test Friday’s low at $0.0000092. This level represents a critical support zone. Failure to hold could trigger accelerated selling as stop-loss orders activate.

The path to recovery faces obstacles. Bulls would need to generate significant buying interest to reverse the trend. A successful recovery could push SHIB toward daily resistance at $0.000010. Breaking through this barrier requires sustained volume and positive market sentiment.