The Who owns 90% of bitcoin todaymeme coin sector faces renewed selling pressure this week as Dogecoin (DOGE) and Shiba Inu (SHIB) extend their downward trajectories.
Market data reveals a notable shift in trader sentiment, with derivatives metrics flashing warning signs for the popular canine-themed assets.
Current long-to-short ratios suggest professional traders are increasingly positioning for further downside in these volatile altcoins.
Monday's trading session saw continued weakness across the meme coin category, with DOGE and SHIB building on last week's 6-7% declines. Analysis of derivatives markets shows the long-to-short ratio for both assets remaining below parity, signaling that speculative traders currently favor bearish bets over bullish positions.
Derivatives Data Reveals Growing Skepticism Toward Meme Coins
Recent figures from derivatives tracking platforms indicate ratios of 0.79 for DOGE and 0.82 for SHIB, values that traditionally suggest market participants anticipate additional price depreciation. These metrics represent the proportion of long positions relative to short positions across major exchanges, with readings below 1.0 typically reflecting bearish sentiment.
The current positioning marks a notable shift from earlier in the month when both assets showed more balanced ratios. This change coincides with broader market uncertainty and comes after both cryptocurrencies failed to sustain recent recovery attempts.
Technical Outlook: DOGE Shows Vulnerability at Key Levels
Dogecoin's price action reveals concerning technical developments following its rejection near the $0.40 Fibonacci level last week. The subsequent 16% pullback has brought the asset back toward the lower end of its recent range, with current trading around $0.32 testing important support zones.
Momentum indicators currently favor bears, with the daily RSI hovering near 40 and maintaining a downward trajectory. The MACD histogram's bearish crossover last week adds confirmation to the weakening technical structure. Should current support levels fail, analysts note potential for a retest of December's swing low near $0.26.
Shiba Inu Breaks Critical Trendline Support
Shiba Inu's technical picture appears equally concerning after Friday's breakdown below a multi-month ascending trendline. The violation of this key support level, which had guided price action since August, suggests potential for additional downside toward $0.000016 - representing a 12% decline from current levels.
Daily chart analysis shows SHIB's RSI at 34, firmly in bearish territory, while the MACD's recent crossover adds to the negative momentum signals. The meme coin now trades around $0.000018, having given up most of its January gains as market participants reassess risk appetite for speculative crypto assets.
Market observers note that both assets face challenges from shifting sentiment in the broader crypto market, where traders appear to be rotating away from higher-risk segments. The coming sessions will prove critical in determining whether current support levels can hold or if additional downside becomes necessary to balance supply and demand.